Vertical spreads

Moderately bullish

Debit

Risk: Defined both ways

Bull call spread

Also called: Debit call spread, Call debit spread

Buy a call and sell a higher-strike call on the same expiry: a cheaper bullish position with the gain capped at the strike gap.

Payoff sketch (per unit, index points)

At expiry

Today (7 days left)

Net premium

Debit 87 pts

Max profit

+113 pts (₹7,334 per lot)

Max loss

−87 pts (₹5,666 per lot)

Breakeven

25,087

Legs: Buy CE ATM · Sell CE ATM +200. Illustration, not live prices: an index at 25,000, strikes 100 points apart, Black-Scholes premiums at 13% implied volatility, 7 days to expiry, 6.5% interest, no skew and before charges. Rupees per lot use a NIFTY lot of 65.

How it works

The call sold pays for part of the call bought. In exchange, the gain stops at the higher strike: above it both calls move together.

Because one leg is long and one short, time decay and volatility largely offset; what remains depends on where the price sits relative to the two strikes.

When traders use it

A bullish view with a target near the upper strike.
To lower the cost and the breakeven of a long call when a very large rally is not expected.

Greeks

Delta	Positive, smaller than a single call's.
Gamma	Positive near the lower strike, negative near the upper strike.
Theta	Negative while the price is below the middle of the spread, positive once it is above.
Vega	Small: the two legs largely cancel.

Profit, loss and margin

Max profit	(Strike gap − net debit) × quantity, when the underlying settles at or above the upper strike.
Max loss	The net debit plus charges, when it settles at or below the lower strike.
Breakeven	Lower strike + net debit.
Margin	Little beyond the debit: SPAN recognises the short call is covered by the long one (once the long leg is in).

In India

SPAN margins the whole position, so a defined-risk spread usually blocks far less than its short leg alone. Brokers grant the hedge benefit only when the protective leg is actually in the account, which is why the long leg is usually placed first.
A long option that finishes in the money is exercised automatically. STT is then charged on its intrinsic value at the exercise rate (0.15% from 1 April 2026 in Arthfy's cost model), instead of the sale rate on the premium (also 0.15%) that applies when the option is sold before the close. See the lesson on the STT exercise trap.
Since 20 November 2024 each exchange keeps one weekly index expiry: NIFTY on NSE and SENSEX on BSE. Since September 2025 NSE contracts expire on Tuesdays and BSE contracts on Thursdays. BANKNIFTY, FINNIFTY, MIDCPNIFTY and stock options expire monthly (NSE on the last Tuesday). A holiday moves the expiry to the previous trading day.

Arthfy numbers

Bull call spread: what it did since 2016

Bull call spread, at the money, wing 2 strikes beyond, entered 8-15 days before expiry.

0-2 d

3-7 d

8-15 d

16-30 d

31-45 d

Try it in the F&O hub

Opens the tool with this structure on today's NIFTY chain. Reading is free with an Arthfy account; some runs use free attempts.

Open in the builderPayoff, Greeks, scenario grid and charges on today's NIFTY chain

Backtest since 2016Daily data, every NIFTY expiry

Replay on expiry daysMinute data since October 2024

Open the option chainLive premiums, IV and Greeks

Single options

Seagull (bullish)

For education: how the structure works and what it did historically, not a recommendation to trade it.