A Call Spread (also known as a Vertical Call Spread) is a bullish options strategy that involves buying one call option and selling another call option at a higher strike price, both with the same expiration date.
This strategy allows traders to profit from a moderate upward move while reducing upfront cost compared to buying a single call.
How It Works
On Kyan, you can build this position using:
1× Long Call (lower strike)
1× Short Call (higher strike)
Because you’re selling a call at a higher strike, you collect some premium, offsetting the cost of buying the lower-strike call.
Profit and Loss Profile
Maximum Profit: Difference between strike prices minus the net premium paid.
Maximum Loss: Limited to the initial net premium paid.
Breakeven: Lower strike + net premium paid.
Why Traders Use It
To limit downside risk while keeping upside exposure.
To express a directional bullish view at lower cost.
To take advantage of moderate upward movement in the underlying asset.