What is a call spread?
Updated 6 June 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.
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?
Related tools and guides
Detect the type and run the numbers in the Call Spread Calculator, or model the put-based credit spread with the Bull Put Spread Calculator. Compare a defined-risk spread with selling a put outright in Cash-Secured Put vs Bull Put Spread, or weigh the two directions in Debit Spread vs Credit Spread. Map any spread in the Payoff Diagram Builder.
Educational explainer only — not financial advice. Examples are illustrative and exclude commissions, early assignment and dividends. Confirm the mechanics and size positions to your own risk tolerance.