what is bull call spread?

A bull call spread is a options trading strategy that involves buying a call option with a lower strike price and selling a call option with a higher strike price on the same underlying asset. The goal of a bull call spread is to profit from an increase in the price of the underlying asset, while also limiting the potential for losses.

The bull call spread is a limited risk, limited reward strategy, as the potential profit is limited to the difference between the two strike prices, less the cost of the spread. The potential loss is also limited to the cost of the spread.

The bull call spread is often used when a trader expects the price of the underlying asset to rise, but is unsure of the magnitude of the price increase. It can be a useful strategy for traders who want to take a bullish position in an asset but want to limit their potential losses. However, it is important to note that the bull call spread strategy involves the risk of losing the entire premium paid for the options if the price of the underlying asset does not increase as expected.