Bullish Spreads - Bull Call & Bull Put

Spreads are the most common way for professional traders to get exposure when their view that a stock will go up in value over a certain period. If you have a profit target in mind for a move higher, these trades provide a solution to the burn in time decay of a bought single option and allow you to get more exposure.

In this video, we look at what bullish spreads are, when you would use a bull put spread vs a bull call spread, and how to set them up. Sometimes these strategies are referred to as bullish vertical spreads.

A bull call spread is a modification of the bought (long) call strategy and a bull put spread is a modification of the sold (naked) put strategy.

Using spreads is the preferred method for professional option traders to participate in a directional movement in the underlying stock.

After watching this video, you should be able to understand the benefit of using spreads over trading a single option, how to construct a bullish spread and when to use one in your trading arsenal.

Video Contents

• What is a bullish spread?
• Bull Call Spread
• Bull Put Spread
• Bull Call vs Bull Put Spread
• Comparing spreads in the Implied Volatility platform