Bull Call Spread Calculator
Simulate two-leg debit call spread payoffs, maximum profit caps, and net debit risk with SVG charts.
Strategy Position Legs (2)
Expiry P&L Visualization
How the Calculation Works
Read parameters and compute total exposure: multiply order quantity by contract unit multiplier.
Evaluate terminal return at the selected target price using strict financial mathematical boundary logic.
Deduct upfront capital commitments, taxes, or net debits to produce final net profit or loss realization.
Calculation Formula
Example Calculation
Buy 24,500 Call at ₹190, Sell 25,000 Call at ₹60 on 50 units (Nifty).
Spread width is 500 points minus ₹130 net debit = 370 points max profit (₹18,500 on 50 units).
Assumptions & Parameters
- Both option legs share the exact same underlying asset and expiration date.
Frequently Asked Questions
What is a bull call spread?
A bull call spread is a defined-risk, moderately bullish strategy created by buying a lower strike call and selling a higher strike call.
What is the maximum profit on a bull call spread?
Maximum profit equals (Difference between strikes minus Net Debit paid) multiplied by contract quantity.
What is the maximum loss?
Maximum loss is strictly capped at the net debit paid upfront to establish the position.
How is the breakeven point calculated?
The breakeven price equals the lower strike price plus the net debit per unit paid.
What happens if the underlying expires between the strikes?
The short call expires worthless while the long call maintains partial intrinsic value, reducing loss or yielding modest profit.
Why use a spread instead of a naked long call?
Selling the higher call finances part of the long call's cost and reduces time decay risk, though it caps maximum upside.