--- title: "Bull call and bear put spreads on Nifty, with real prices" description: "Bull call and bear put spreads on a dated NSE Nifty chain: net debit, breakeven, maximum gain and loss, and the STT that hits a long leg at expiry." source_url: "https://www.rupeecase.com/learn/path-17/module-17-2-bull-call-and-bear-put-spreads" --- [Path 17 2 of 23](/learn/path-17/)Vertical debit spreads: bull call and bear put[Next 17.3](/learn/path-17/module-17-3-covered-call-and-protective-put) Wednesday 10 Jun 2026. The Nifty 23,250 call settled at 321.65 a unit. One lot of 65 units cost Rs 20,907. The 23,450 call settled at 226.65. Sell the second to pay for part of the first and the net bill is 95.00 a unit, Rs 6,175 a lot, under a third of the call alone. On Tuesday 30 Jun Nifty closed at 23,865.75. The plain call made Rs 19,117 a lot. The spread made Rs 6,825. That is the whole trade: you pay less, and you give away the top. I like a trade whose worst day I can write down before I place it. A vertical spread is that trade. Every figure comes from NSE end of day files of 10 and 30 Jun 2026, so nothing here is live. 3By the end you can 1. Read the net debit, breakeven, maximum gain and maximum loss of a bull call or bear put spread. 2. Work out the cost of one lot from two dated settlement prices. 3. Say what a spread gives up against a single option, and which charge falls on a long leg at expiry. Watch in the terminal: why do the hero, key figure and XIRR differ? A short tutorial on sample data. ## The idea, plainly Think of selling part of your upside. You buy a call that pays above 23,250. Then you sell a second call at 23,450 to someone else. They paid 226.65 a unit on 10 Jun. In return they keep everything the index earns above 23,450. You have swapped the top of the payoff for cash now. ### What is a bull call spread? Buy a call at a lower strike. Sell a call at a higher strike. Same expiry, same lot. The premium you pay less the premium you receive is the net debit, money out of your account. The most you can lose is that debit. The most you can make is the gap between the strikes less the debit. It earns when the index rises, up to the higher strike. Bull call spread Max loss = net debit Max gain = gap less debit Breakeven = low strike + debit Both the loss and the gain stop at the two strikes Buy the 23,250 call, sell the 23,450 call, one lot, expiry 30 Jun 2026. The straight line is the payoff at expiry. The smoother curve shows the same position 10 days before expiry, priced with Black 76. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. Read one more paragraph, 41 words Read the smooth curve too. Before expiry the spread is worth a little less than its full gap even above the higher strike, because both calls still carry time value. The corners round off. Only at expiry do they become sharp. ### What is a bear put spread? The mirror. Buy a put at a higher strike. Sell a put at a lower strike. It earns when the index falls, down to the lower strike, and it loses the debit if the index finishes above the higher one. Bear put spread Max loss = net debit Max gain = gap less debit Breakeven = high strike − debit The bear put spread is the bull call spread turned over Buy the 23,250 put, sell the 23,050 put, one lot, expiry 30 Jun 2026, at expiry. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. ### Why use a spread and not one option? It costs less, so the loss when the index goes nowhere is smaller. The sold leg also cancels much of the time decay and the swing in volatility that a lone option carries. The price is the cap. Whatever the index does beyond the sold strike is not yours. ### What does a spread cost in India? * **Premium.** The net debit is paid upfront. SEBI's circular of 1 Oct 2024 made upfront collection of the net option premium the rule from 1 Feb 2025. * **Margin.** The sold leg needs margin. The bought leg caps its risk, so SPAN, the margin model of NSE Clearing, asks for less than on the sold call alone. The exact rupees change with the position and through the day. * **STT**, at the rates in force from 1 Apr 2026. 0.15% of the premium when the sold leg is sold. On a bought leg left to expiry in the money, 0.15% of its whole intrinsic value, not of the net gain. [Module F16](/learn/path-14/module-14-6-expiry-and-settlement) covers it. ## Worked example: 10 to 30 Jun 2026 The June chain of 10 Jun 2026: the future settled at 23,240.10, and the monthly expiry was Tuesday 30 Jun, settled on the index close for expiries before 7 Dec 2026. Lot size 65. The bought call is the strike nearest the future, 23,250. All prices are settlement prices, which are not fills: a real order pays a bid and ask on each leg. Two prices become one debit, and the debit is the most you can lose Settlement prices of 10 Jun 2026, monthly expiry 30 Jun 2026. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. | One lot | Call alone | Bull call spread | | --- | --- | --- | | Net premium, a unit | 321.65 | 95.00 | | Cost, also the most it can lose | Rs 20,907 | Rs 6,175 | | Most it can make | No cap | Rs 6,825 | | Breakeven at expiry | 23,571.65 | 23,345.00 | | Result at the 30 Jun close of 23,865.75 | Rs 19,117 | Rs 6,825 | | One lot | Bear put spread | | --- | --- | | Net premium, a unit | 82.80 | | Cost, also the most it can lose | Rs 5,382 | | Most it can make | Rs 7,618 | | Breakeven at expiry | 23,167.20 | | Result at the 30 Jun close | −Rs 5,382 | Read 4 more paragraphs, 201 words The bear put spread on the same chain buys the 23,250 put and sells the 23,050 put. Nifty rose 2.8% in twenty days. The bull call spread made its maximum, Rs 6,825, because the close was above both strikes. Per rupee spent it returned 110.5%, the plain call 91.4%. The call made more rupees a lot. The spread made more per rupee at risk. The bear put spread lost the whole Rs 5,382, since both of its puts finished worthless. Then the charges. The sold call's STT is Rs 22.10. The bought call finished 615.75 points in the money and was exercised for its holder, so STT of 0.15% fell on that whole amount: Rs 60.04. That is Rs 82 in all, 1.2% of the gain, before brokerage and exchange charges. If the long leg is sold before expiry, STT falls on the premium it sells for instead. One month shows the shape and nothing about odds. Had Nifty closed at 23,250 instead, the plain call would have lost its Rs 20,907 and the spread its Rs 6,175. At or below the lower strike both lose everything they cost. The spread simply costs less. ## The common mistake The belief: A spread has a capped loss, so it is a safe trade. Capped is not small. The cap is the whole debit, and the debit goes when the index finishes on the wrong side of the bought strike. On 30 Jun 2026 the bear put spread lost all Rs 5,382, every rupee it cost, because Nifty closed 615.75 points above its bought 23,250 put. A defined loss tells you the worst case before you trade. It does not tell you how likely the worst case is. The questions that matter are how large the debit is against the account, and how far the index must travel to reach the breakeven, 23,345.00 for the bull call spread. The term this section turns on: Breakeven From the module glossary; every term is in the Learn glossary too. Source: Module 17.2, Vertical debit spreads: bull call and bear put. ## Key takeaways * A vertical spread buys one option and sells another of the same type. * Loss stops at the net debit. Gain stops at the gap less the debit. * The spread costs less than the lone option and gives up the top. * Capped is not safe: the whole debit was lost in the bear put spread. * STT falls on a long leg exercised at expiry, on its whole intrinsic value. * Settlement prices are not fills: each leg pays its own bid and ask. Watch in the terminal: what do estimated costs take? A short tutorial on sample data. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) What does Vertical debit spreads: bull call and bear put cover?Buy one option, sell another a few strikes away. What it costs, the most it can lose or make, and what it gives away. It works through The idea, plainly, Worked example: 10 to 30 Jun 2026, The common mistake, Key takeaways. It is module 17.2 of Path 17, Strategies and Hedging, about 8 minutes of reading, free. TTry it ## Payoff builder, on the same example. Legs from a dated chain, the expiry and before expiry curves, breakevens and the charges. Dated NSE end of day data, nothing live, no orders. **Payoff builder**, Nifty, 10 Jun 2026, 30 Jun 2026 expiry. [Open the payoff builder](/learn/tools/payoff-builder?chain=NIFTY_2026-06-10_2026-06-30&preset=bull-call-spread) AF&O on RupeeCase ## Hedging only, in development F&O at RupeeCase will do one job: protect a portfolio you already own, by a rule published before it runs. No speculation, no naked option selling, no leveraged bets. It is not available yet. [How hedging will work](/hedging)[Sign up for RupeeCase](https://invest.rupeecase.com/signup) [No hedgeFalls with the marketWith a putA floor, for a premiumIllustration with made up numbers, not a product and not a recommendation.](/hedging) QQuick check ## 10 questions, 7 to pass. Each attempt draws 10 of the 15 questions in this module's bank, and a retake draws a fresh set. A pass gives this module's Certificate of Completion. Your result stays on this device and counts towards the Path 17 certificate. 7 of 10 correct passes module 17.2 Every answer is explained when you check; a retake is always free. Source: RupeeCase Learn quiz rules (70% to pass). Passed ### Certificate ID Download PNGPrint or save as PDF[Check the ID](/learn/certificates/verify) Self paced and unproctored. A record of completing free education by RupeeCase; not a NISM certificate and not endorsed by NISM, NSE, BSE or SEBI. It qualifies no one to deal, advise or publish research. CCheck yourself ## Path 17 so far. Your quick check results on this device, stop by stop. Stop 2 of 23 on Path 17 Strategies and Hedging: every live stop, this module ringed. Source: RupeeCase Learn, Path 17. 1. [17.1Reading and building payoff diagramsNot yet](/learn/path-17/module-17-1-payoff-diagrams) 2. [17.2Vertical debit spreads: bull call and bear putNot yet](/learn/path-17/module-17-2-bull-call-and-bear-put-spreads#quiz) 3. [17.3Covered call, protective put and cash secured putNot yet](/learn/path-17/module-17-3-covered-call-and-protective-put) 4. [17.4Why and when to hedge: insurance in plain numbersNot yet](/learn/path-17/module-17-4-why-hedge) 5. [17.5Straddles and strangles, long and shortNot yet](/learn/path-17/module-17-5-straddles-and-strangles) 6. [17.6Credit spreads: bull put and bear callNot yet](/learn/path-17/module-17-6-credit-spreads) 7. [17.7Iron condor and iron fly on NiftyNot yet](/learn/path-17/module-17-7-iron-condor-and-iron-fly) 8. [17.8Butterflies and broken wing butterfliesNot yet](/learn/path-17/module-17-8-butterflies) 9. [17.9Option calendar spreadsNot yet](/learn/path-17/module-17-9-option-calendar-spreads) 10. [17.10Choosing a strategy by view: direction, volatility and timeNot yet](/learn/path-17/module-17-10-strategy-by-view) 11. [17.11Adjustments: what they really do to riskNot yet](/learn/path-17/module-17-11-option-adjustments) 12. [17.12Expiry day: gamma, theta, settlement and the rulesNot yet](/learn/path-17/module-17-12-expiry-day) 13. [17.13Hedging a stock portfolio with Nifty putsNot yet](/learn/path-17/module-17-13-hedging-with-nifty-puts) 14. [17.14Collars and put spreads as cheaper hedgesNot yet](/learn/path-17/module-17-14-collars-and-put-spreads) 15. [17.15Hedging mutual fund portfolios: beta and basisNot yet](/learn/path-17/module-17-15-hedging-mutual-fund-portfolios) 16. [17.16Ratio spreads and backspreadsNot yet](/learn/path-17/module-17-16-ratio-spreads-and-backspreads) 17. [17.17Diagonals and double calendarsNot yet](/learn/path-17/module-17-17-diagonals-and-double-calendars) 18. [17.18P&L attribution by GreeksNot yet](/learn/path-17/module-17-18-pnl-attribution-by-greeks) 19. [17.19Event hedging with event varianceNot yet](/learn/path-17/module-17-19-event-hedging) 20. [17.20Tail hedging and long dated Nifty optionsNot yet](/learn/path-17/module-17-20-tail-hedging) 21. [17.21Hedging an option selling book: wings, vega, gaps and margin stressNot yet](/learn/path-17/module-17-21-hedging-an-option-selling-book) 22. [17.22Kelly and sizing for option strategiesNot yet](/learn/path-17/module-17-22-kelly-sizing) 23. [17.23Risk for option books: scenarios, stress, VaR, ES and margin shocksNot yet](/learn/path-17/module-17-23-option-book-risk) 24. [TPath test, 30 questionsNot yet](/learn/path-17/module-17-23-option-book-risk#pathTestSection) Path 17 in reading time: 215 minutes over 23 modules Minutes of reading per module, this one in amber. Source: RupeeCase Learn, Path 17. Explore next ## Put the module to work. * [Free module 17.1Reading and building payoff diagrams7 min read](/learn/path-17/module-17-1-payoff-diagrams) * [Free module 14.6Expiry and settlement: cash, physical, exercise and STT8 min read](/learn/path-14/module-14-6-expiry-and-settlement) * [Free module 17.6Credit spreads: bull put and bear call9 min read](/learn/path-17/module-17-6-credit-spreads) * [QuestionWhat are a bull call spread and a bear put spread?A short answer with a dated chart](/learn/questions/bull-call-and-bear-put-spread) * [Path 17Strategies and hedging23 modules live, 0 coming next](/learn/path-17/) * [ToolOption payoff builderLegs on a dated Nifty chain, breakevens and charges](/learn/tools/payoff-builder) Community ## Join my WhatsApp group. Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me. New to RupeeCase? [Getting started](/getting-started) [See the terminal](/terminal) [Sign up for RupeeCase](https://invest.rupeecase.com/signup) [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7) [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera SSources ## Go to the source. 6 sources, NSE the most cited The publisher of each source listed below. Source: Module 17.2 source list. 1. [NSE, equity derivatives contract specifications (lot size, strikes, European exercise, cash settlement)](https://www.nseindia.com/static/products-services/equity-derivatives-contract-specifications) NSE 2. [NSE Clearing, margins: SPAN, initial margin and extreme loss margin](https://www.nseclearing.in/risk-management/equity-derivatives/margins) NSE 3. [NSE, securities transaction tax on equity derivatives](https://www.nseindia.com/static/products-services/equity-derivatives-securities-transaction-tax) NSE 4. [SEBI circular of 1 October 2024, Measures to strengthen the equity index derivatives framework (upfront collection of option premium)](https://www.sebi.gov.in/legal/circulars/oct-2024/measures-to-strengthen-equity-index-derivatives-framework-for-increased-investor-protection-and-market-stability_87208.html) SEBI 5. [NISM, Series VIII Equity Derivatives, test objectives (option strategies)](https://www.nism.ac.in/revamp-nism/test-objectives-revised-nism-series-viii-equity-derivatives-certification-examination/) NISM 6. Hull, J., Options, Futures, and Other Derivatives, Pearson (trading strategies involving options) Book GTerms ## 5 terms from this module. Vertical spreadTwo options of the same type and expiry at different strikes, one bought and one sold. Net debitThe premium paid for the bought leg less the premium received for the sold leg. It is the most a debit spread can lose. BreakevenThe index level at expiry at which a position neither gains nor loses. Intrinsic valueWhat an option is worth if exercised immediately: the index less the strike for a call, the strike less the index for a put, never below zero. LegOne option or future inside a position made of several. [All 230 terms in the glossary](/learn/glossary) [Question people askWhat are a bull call spread and a bear put spread?A short answer with a dated chart](/learn/questions/bull-call-and-bear-put-spread)[Related module17.1 Reading and building payoff diagrams7 min, Beginner](/learn/path-17/module-17-1-payoff-diagrams)[Related module14.6 Expiry and settlement: cash, physical, exercise and STT8 min, Beginner](/learn/path-14/module-14-6-expiry-and-settlement)[Pillar guideDerivatives and Quant115 modules across paths 12 to 19](/learn/derivatives) Education only, not investment advice, a research report or a recommendation to buy, sell or hold any security. RupeeCase (QC Alpha Technologies Pvt Ltd) is not registered with SEBI as an investment adviser or research analyst. Contracts and prices shown are for illustration only, come from NSE end of day files at least 30 days old, and are not recommendatory. Derivatives trading carries a high risk of loss.