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The bull call spread is the first of the four vertical spread options strategies we’ll cover in this video series.
The bull call spread is a, you guessed it, bullish vertical spread constructed with call options.
How to set up the trade:
1. Buy a call option
2. Sell another call option at a higher strike price (same quantity and expiration)
In this video, we’ll break down how the strategy makes or loses money by visualizing the expiration payoff diagram, as well as plotting the performance of a call spread over time using real option data.
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