1: Call Spread (video)

A Call Spread is a directionally bullish strategy that buys a call, while simultaneously selling a higher strike call in the same expiration.

An investor might use a Call Spread instead of an outright Call to risk less capital and lower their Breakeven, in exchange for capping potential upside gains. The investor would see increasing gains if the stock moves above their breakeven, and Maximum Gain if the stock finishes above the spread.

Losses would occur if the stock stays below the Breakeven. A Maximum Loss would occur with the stock below the spread at expiration.

Free From Options AI

Options AI Tools Home

Expected moves, unusual options activity, earnings data, stock scanner and much more! Yours FREE from Options AI.

Earnings Calendar with Expected Moves

See expected earnings moves to help decide whether to trade or fade the move.

Compare Expected Moves

Skip the chains and compare expected moves across multiple stocks.

Options University

Quickly advance your understanding of income and debit spreads with our short video series. 


Open an account

Learn more about Options AI and apply for an account.

Learn More

Stay in the loop

Be the first to hear product announcements and get daily market content from The Orbit.

WordPress Lightbox