STRATEGY | Bull Call Spread |
MARKET OPINION | Bullish |
MARKET POSITION | Buy a lower strike price call and sell a higher strike price call on the same commodity with the same expiration date |
OPTION STRATEGY | Net debit [premium received is less than premium paid] |
PROFIT POTENTIAL | Limited to the [difference between the strike prices] minus the net debit |
PROFIT POINT | Any futures price above the lower strike price plus net debit; maximum profit point is any futures price at or above the higher strike price |
LOSS POTENTIAL | Limited to the net debit |
LOSS POINT | Any futures price below the [lower strike plus the net debit]; maximum loss point is any futures price at or below the lower strike price |
BREAK-EVEN-POINT | Lower strike price + net debit |
MARGIN REQUIRED | No |
DELTA | [Delta of call bought]-[Delta of call sold] |
