Bull Spread - Option Strategy

Option Strategy

Bull Spread - Option Strategy

Bull Spread is a strategy achieved by combining two options of the same type, by buying an option at one strike price and selling another option at a higher strike price. This strategy may be achieved using either CALL or PUT options.

This is a limited profit / limited loss strategy, which works well in case the underlying is expected to rise moderately. This type of strategy helps to reduce the premium cost of a naked option.

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 P/L
Option
Strike Price 10250
Gap 100
Sel Sr Opt Trans Strike Qty Premium
1CallLong10250170
2CallShort10350140

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