STRATEGY

Bull Call Spread

MARKET OPINION

Bullish

MARKET POSITION

Buy a lower strike price call and sell a higher strike price call on the same commodity with the same expiration date

OPTION STRATEGY
DEBIT/CREDIT

Net debit [premium received is less than premium paid]

PROFIT POTENTIAL

Limited to the [difference between the strike prices] minus the net debit

PROFIT POINT

Any futures price above the lower strike price plus net debit; maximum profit point is any futures price at or above the higher strike price

LOSS POTENTIAL

Limited to the net debit

LOSS POINT

Any futures price below the [lower strike plus the net debit]; maximum loss point is any futures price at or below the lower strike price

BREAK-EVEN-POINT

Lower strike price + net debit

MARGIN REQUIRED

No

DELTA

[Delta of call bought]-[Delta of call sold]