Bull Call Spread vs Bull Put Spread
Both are bullish vertical spreads with a capped profit and a capped loss. The call spread buys a call and sells a higher one: you pay to enter. The put spread sells a put and buys a lower one: you're paid to enter. With the same strikes, their payoffs at expiry match apart from costs.
Last reviewed:
Side by side, live
| Bull Call Spread | Bull Put Spread | |
|---|---|---|
| Net Cost? | $1036.77 | -$933.85 |
| Max Profit? | $963.23 | $933.85 |
| Max Loss? | -$1036.77 | -$1066.15 |
| Breakeven(s)? | $86036.77 | $86066.15 |
| Prob. of Profit? | 46% | 46% |
| Delta? | 0.1698 | 0.1700 |
| Theta? | -0.4536 | -0.4722 |
| Vega? | 0.9280 | 0.9396 |
Both built on the same venue, asset and expiry, at execution prices with fees, exactly as each strategy's own page shows them; open either one to change strikes or width.
The difference
- Cash at entry: the call spread is a debit, which is its maximum loss; the put spread is a credit, which is its maximum profit.
- Usual strikes: traders tend to place a call spread at or above the money, so it needs the price to rise, and a put spread below the money, so it profits if the price simply doesn't fall.
- Time: placed that way, the call spread loses value as time passes without a rise, while the put spread gains from time passing.
When each one fits
A call spread fits an expected rise with a limited budget. A put spread fits a view that the price holds above a level, earning the credit if nothing happens. The live numbers above show both at today's prices, built around the current price.
What to watch
Compare reward to risk and probability of profit: the put spread usually wins more often and less each time. Fees and spreads hit each leg, so on narrow spreads the costs can be a large share of the maximum profit.
Educational content, not investment advice. See the disclaimer.