Bullish strategy · Advanced
Market outlook Moderately bullish
Bull call spread with additional short call at higher strike.
Each row reprices every live leg independently. Entry premiums stay fixed.
| Underlying price | Move | Profit / loss |
|---|
Dollar-scaled for each leg's quantity, multiplier, expiry, and IV. Theta is per day; vega and rho are per one percentage-point move.
| Leg | Delta | Theta/day | Vega |
|---|
Strike configurations
Place all three strikes closer together for a tighter, higher-probability profit zone.
Key difference: Smaller max profit range but higher odds the stock finishes inside the profitable band.
Best for: Traders targeting a specific modest price level with tight conviction.
Space the two short strikes further apart to delay where uncapped losses begin.
Key difference: Gives the trade more room before the unlimited-loss zone above the upper short strike, at the cost of a larger net debit.
Adjustment: Buy back one short call if the stock rallies hard through the middle strike to cap runaway risk.
Best for: Traders who want ladder economics but more of a cushion against a sharp rally.
Common questions
Yes, above the upper short strike — unlike a bull call spread, the second short call is uncovered by a matching long call, so a strong rally can produce open-ended losses if left unmanaged.
The extra premium from the second short call further reduces or eliminates the net cost, but it removes the defined-risk cap that a standard two-leg bull call spread has.
Common approaches include closing or rolling the position before expiration if the stock nears the upper short strike, or converting it back into a defined-risk spread by buying back one short call.
It's generally reserved for experienced traders with a precise price target, since the payoff shape requires active monitoring near the upper strike that beginner strategies don't demand.
Deep dive
Detailed explanations, management techniques, and real-world scenarios
Scenario Lab
Explore how this position changes before expiration
Quick reference
Quick answers about when to use, capital needed, and key risks
Profit and loss
Compare max profit, max loss and break-even across common strategies
Custom calculator
Combine calls, puts, stock, quantities and different expirations
Risk sensitivity
Inspect Delta, Gamma, Theta, Vega and Rho
Same market view
Every bullish structure on the site, ranked by risk and capital needed
Same experience level
Structures with a comparable learning curve to the bull call ladder
This calculator uses exact intrinsic value at a leg’s expiration and Black–Scholes theoretical value while that leg remains open. Position Greeks use the same visible legs and model assumptions. Results exclude fees, tax, liquidity, margin, early exercise and assignment behavior. Educational illustration only—not financial advice.