Long Call Spread
The long call spread, also known as the bull call spread, is a bullish options strategy that involves buying a call option while simultaneously selling another call option with a higher strike price. This strategy profits from a moderate upward movement in the underlying asset's price.
Key Points:
- Buy a call option with a lower strike price.
- Sell a call option with a higher strike price.
- Both options have the same expiration date.
- Limited risk and potential for limited profit.
- Used when the investor expects a moderate rise in the underlying asset's price.