THE OPTIONS GUIDE 📘
STRATEGY: BULL CALL SPREAD
Most retail traders buy naked calls hoping for explosive moves.
Professional options traders reduce premium decay by structuring the trade. ⚡
NIFTY trading at: 25,000
Professional Setup:
✔️ Buy 25,000 CE @ ₹220
✔️ Sell 25,300 CE @ ₹110
Net Debit Paid:
₹110
Lot Size:
75
📊 Maximum Profit:
Strike Difference:
300 points
300 - 110 = 190 points
190 × 75
= ₹14,250
📉 Maximum Loss:
₹110 × 75
= ₹8,250
Breakeven:
25,000 110
= 25,110
This strategy is used when traders expect:
✔️ Moderate upside
✔️ Controlled directional movement
✔️ Lower capital exposure compared to naked calls
Why professionals prefer spreads:
Because buying naked options means fighting:
• Theta decay
• IV crush
• Expensive premiums
Bull Call Spreads convert a directional opinion into a STRUCTURED PAYOFF. 📈
Limited risk.
Defined reward.
Professional execution.
#BullCallSpread #OptionsTrading