Bull spread
In options trading, a bull spread is a bullish, vertical spread options strategy that is designed to profit from a moderate rise in the price of the underlying security.
Because of put-call parity, a bull spread can be constructed using either put options or call options. If constructed using calls, it is a bull call spread. If constructed using puts, it is a bull put spread.
Bull call spread
A bull call spread is constructed by buying a call option with a low strike price (K), and selling another call option with a higher strike price.
Often the call with the lower exercise price will be at-the-money while the call with the higher exercise price is out-of-the-money. Both calls must have the same underlying security and expiration month. If the bull call spread is done so that both the sold and bought calls expire on the same day, it is a vertical debit call spread.
Break even point= Lower strike price+ Net premium paid
Example: Bull Call Spread P/L graph
Suppose we have a 1-year Bull Call Spread with the following parameters:
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by Paul Brady
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by Paul Brady
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by Paul Brady
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Youre The One
by: Paul BradyThis old world is pretty crazy
People hurting everywhere
Cities dying, leaders lying
Demons dancing in the air
Once I thought I knew the answer
To the sorrow on this earth
One day judge and one day jury
But the more I see the beauty
Turn to hatred and to fear
There's just one thing that I'm sure of
You're the one I love
You're the one I love
Sure as stars above
You're the one I love
Turn my paper, flick my TV,
See my saviours all around
Some say this way, then it's that way
'Till I'm crazy with their sound
Then I look at our two children
See the magic in their eyes
And I wonder what's before them
They say that each new generation
Holds the secret to their time
Will they heed this age old story?
You're the one I love,
You're the one I love
Sure as stars above
You're the one I love
Mogadishu, Sarajevo,
Kampuchea, Palestine,
Belfast city, L.A. war zone,
Children screaming, men in line
Could I really turn to kill you
'Cos your eyes are not quite blue
Watch your daughter beg for mercy?
Could I fool myself forever
That a habit is a truth,
Does it matter if I tell you
That you're the one I love?
You're the one I love
Sure as stars above
You're the one I love
Take me on home, I want to go home