# What Is a Call Spread? Bull Call vs Bear Call Source: https://theoptionsbench.com/what-is-a-call-spread/ > Plain-text mirror for AI/LLM ingestion. Canonical HTML page: https://theoptionsbench.com/what-is-a-call-spread/ --- Updated 30 May 2026 · by Theo Chen A call spread is a **two-leg, defined-risk** options trade: you buy one call and sell another at a different strike, same expiration. Buy the lower strike for a bullish **bull call spread** (a debit); sell the lower strike for a bearish **bear call spread** (a credit). Either way, profit and loss are both capped. Enter your two strikes and premiums and the calculator detects whether it is a bull call or bear call spread, then returns the net debit or credit, max profit, max loss, breakeven and return on risk. Open the Call Spread Calculator -> ## What are the two kinds of call spread? Both use the same two call strikes - the difference is which one you buy: - Bull call spread (debit). Buy the lower-strike call, sell the higher-strike call. You pay a net debit and profit as the stock rises toward the higher strike. It is a cheaper, capped-upside version of simply buying a call. - Bear call spread (credit). Sell the lower-strike call, buy the higher-strike call. You collect a net credit and keep it as long as the stock stays below the lower strike. It is a defined-risk way to bet a stock will not rise. ## Max profit, max loss and breakeven The strike width (the gap between the two strikes) sets the boundaries. Profit and loss always sum to that width times 100: - Bull call (debit): max profit = (width - net debit) × 100; max loss = net debit × 100. - Bear call (credit): max profit = net credit × 100; max loss = (width - net credit) × 100. - Breakeven (both) = lower strike + net premium per share. ## A worked example of each **Bull call spread.** With the stock at $100 you buy the $100 call for $3.00 and sell the $105 call for $1.00 - a net debit of $2.00. Above $105 you make the most: (5 - 2) × 100 = **$300**. Below $100 you lose the whole **$200** debit. Breakeven is $102. **Bear call spread.** The mirror image: you sell the $100 call for $3.00 and buy the $105 call for $1.00 - a net credit of $2.00. If the stock stays below $100 you keep the full **$200**. Above $105 you lose the most: (5 - 2) × 100 = **$300**. Breakeven is again $102. Bull call spread payoff at expiration Buy the $100 call (green) and sell the $105 call (red) for a $200 net debit. Max profit $300 above $105; the most you can lose is the $200 debit below $100; breakeven $102. ## When a call spread makes sense Choose a bull call spread when you are moderately bullish and want defined-risk exposure cheaper than an outright call - you cap the upside at the higher strike in return for a lower cost. Choose a bear call spread when you are neutral-to-bearish and want to collect premium with a known worst case. For the bullish credit version built from puts instead, see the bull put spread. The bottom line A call spread caps both profit and loss by pairing two calls at different strikes - a bull call spread pays a debit to bet on a rise, a bear call spread takes a credit to bet a stock will not rise, and the two outcomes always sum to the strike width. ## Frequently asked questions What is a call spread? A call spread (a vertical spread built from calls) is a two-leg options position: you buy one call and sell another at a different strike but the same expiration. Trading them as a pair caps both your profit and your loss, which is why it is called a defined-risk trade. Depending on which strike you buy, it is either a bullish bull call spread or a bearish bear call spread. What is the difference between a bull call spread and a bear call spread? A bull call spread buys the lower-strike call and sells the higher one - you pay a net debit and profit if the stock rises. A bear call spread sells the lower-strike call and buys the higher one - you collect a net credit and profit if the stock stays below the short strike. Same two strikes, opposite direction: one is a debit bet on a rise, the other a credit bet against one. What is the max profit and loss on a call spread? For a bull call spread (debit): max profit = (strike width - net debit) × 100, max loss = the net debit × 100. For a bear call spread (credit): max profit = the net credit × 100, max loss = (strike width - net credit) × 100. In both cases profit and loss are capped, and the two always add up to the strike width times 100. What is the breakeven on a call spread? For both the bull call and the bear call, breakeven is the lower strike plus the net premium per share - the debit you paid for a bull call, or the credit you received for a bear call. Above breakeven the bull call is making money; below it the bear call keeps its credit. The calculator marks the exact level for your strikes. When should you use a call spread instead of buying a call? Selling the second call lowers the cost (and risk) of a long call, in exchange for capping the upside at the higher strike. Use a bull call spread when you are moderately bullish and want cheaper, defined-risk exposure than an outright call. Use a bear call spread when you are neutral-to-bearish and want to collect premium with a known maximum loss. ## Related questions - What is a bull put spread, the put-based credit version? - How does buying a long call compare to a call spread? - How does an iron condor combine two credit spreads? - How do I choose which strikes to trade?