The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be going through the ultimate quick guide to a bull call spread strategy. Now, a bull call spread option strategy is a strategy that is defined risk where you are buying one option in the money conceivably and selling one option contract out of the money for a net debit. Now, this is like we said, a bullish strategy, so your directional assumption is that the underlying stock will make a move higher in order for this strategy to potentially profit. Now, where you place your bull call spread strikes is then reflective of how aggressive you want to trade the particular stock or how far you think the stock might move. Now, in our example, we suggest that you usually use these strategies by buying one option in the money and selling one option directly out of the money and trying to create a spread around where the stock is trading at the exact moment. Now, if you’re a little bit more aggressive and y