--- title: "What are a bull call spread and a bear put spread?" description: "A bull call spread buys a call and sells a call at a higher strike on the same expiry." source_url: "https://www.rupeecase.com/learn/questions/bull-call-and-bear-put-spread" --- A bull call spread gains between its two strikes, then stops gaining above the upper one Profit and loss at expiry for one lot of a bull call spread on the 30 Jun 2026 NIFTY chain: long the at the money call and short the call four strike steps higher, priced at the settle prices of 10 Jun 2026. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. Both are vertical debit spreads: two options of the same type and expiry, one bought and one sold at different strikes. The buyer pays a net premium, which is the most the position can lose. The sold option lowers the cost and also caps the gain, so the trade gives up some upside to reduce the entry cost. The chart draws a bull call spread on the 30 Jun 2026 Nifty chain. It buys the at the money call and sells the call four strike steps higher, priced at the settle prices of 10 Jun 2026, for one lot of 65 units. The loss is limited to the net premium, the gain is limited to the gap between the strikes less that premium, and the breakeven sits between the two strikes. A bear put spread mirrors it. It buys a put at the higher strike and sells a put at the lower one, so the gain grows as the index falls toward the lower strike. The maximum loss is again the net premium, and the maximum gain is the strike gap less that premium. Both spreads are directional. The premium collected on the short leg does not protect against a wrong direction. The strikes set the cost, the breakeven and the cap, and a wider spread costs more and gives a larger maximum gain and loss. The [collar and put spread page](/learn/questions/collars-and-put-spreads-cheaper) compares the same idea with a stock holding. **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 are a bull call spread and a bear put spread?A bull call spread buys a call and sells a call at a higher strike on the same expiry, so it gains as the index rises to the upper strike and stops gaining above it. A bear put spread is the mirror image, with puts, and it gains as the index falls to the lower strike. LGo deeper ## Where Learn teaches this. [Go deeperVertical debit spreads: bull call and bear put8 min, Beginner](/learn/path-17/module-17-2-bull-call-and-bear-put-spreads)[Go deeperReading and building payoff diagrams7 min, Beginner](/learn/path-17/module-17-1-payoff-diagrams)[Try itPayoff builderLegs from a dated chain, the expiry and before expiry curves, breakevens and the charges.](/learn/tools/payoff-builder) SSources ## Go to the source. 3 sources, NSE the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [NSE, equity derivatives contract specifications (expiry cycle, lot size, settlement)](https://www.nseindia.com/static/products-services/equity-derivatives-contract-specifications) NSE 2. [NSE, option chain page (the live screen; Learn uses only dated end of day files)](https://www.nseindia.com/option-chain) NSE 3. [SEBI investor education, Understanding derivatives](https://investor.sebi.gov.in/understanding_derivatives.html) SEBI ?Questions people ask ## Related questions. 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