Bull Call Spread
In this strategy, an investor simultaneously purchases call options at a specific strike price and sells the same number of calls at a higher strike price. Both call options have the same expiration date. This strategy is used when the investor is bullish and expects a moderate rise in the price of the underlying asset. The investor limits their upside profit potential but reduces the net premium spent compared to buying a single call option outright. The strategy is also known as a "debit call spread" because the investor pays a net debit to establish the position.
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Options
| Action | Qty | Expiration Date | Strike | Type | Price | Delta | IV | |||||||||
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| MRK | MRK Leg 1 |
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| MRK | MRK Leg 2 |
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Trade Information
Bull Call Spread
BUY +1 MRK Dec 18, 2026 155.00 call @$2.36
SELL -1 MRK Dec 18, 2026 165.00 call @$0.62
Stock
MRK Current Price
$146.87 USD
MRK Breakeven Price
Above $156.74 (+6.72%)
Trade Details
Cost of Trade
$174.00 USD
Maximum Profit
$826.00
Maximum Loss
-$174.00
CVaR
Probability Analysis
Probability of Profit (PoP)
Probability of Max Profit
Probability of Max Loss
Risk Reward Analysis
Expected Value (EV)
Expected Return (EV/risk)
Reward/Risk
Position Greeks
Delta (Δ)
Gamma (Γ)
Theta (Θ)
Vega (ν)