Vertical spread
1. Bull Call Spread
- Overview
Bull call spread is an options strategy where you buy Call A at a lower strike and sell Call B at a higher strike. Both options are on the same underlying asset and have the same expiration date. This strategy offers limited profit potential while also capping potential losses.
- Features
- Components
- Profit source
"Buying Call A" realizes the bullish expectation and earns the profit from the underlying stock's price increase; "Selling Call B" reduces the cost of "Buying Call A."
- Case study
Let's imagine a made-up company called TECH.
Right now, TECH's stock price is $100 per share. You think the stock price will show a moderate upward trend in the near future, but not a huge jump. So, you decide to build a Bull Call Spread strategy.
You buy one Call option with a lower strike price (Call A) of $100, paying a premium of $4, and at the same time, you sell one Call option with a higher strike price (Call B) of $110, receiving a premium of $1.5.
 |  |  |
2. Bull Put Spread
- Overview
Bull put spread is an options strategy where you buy Put A at a lower strike and sell Put B at a higher strike. Both options are on the same underlying asset and have the same expiration date. This strategy generates income upfront and has both a defined maximum profit and a defined maximum risk.
- Features
- Components
- Profit source
Selling Put B collects the premium, while buying Put A limits potential losses, resulting in a profit when the stock price rises.
- Case study
Let's imagine a made-up company called TECH.
Right now, TECH's stock price is $100 per share. You think the stock price will show a moderate upward trend in the near future, but not a huge jump. So, you decide to build a Bull Put Spread strategy.
You buy one Put option with a lower strike price (Put A) of $100, paying a premium of $3, and at the same time, you sell one Put option with a higher strike price (Put B) of $110, receiving a premium of $5.
 |  |  |
3. Bear Call Spread
- Overview
Bear call spread is an options strategy where you sell Call A at a lower strike and buy Call B at a higher strike. Both options are on the same underlying asset and have the same expiration date. This strategy offers limited profit potential while also capping potential losses.
- Features
- Components
- Profit source
Selling Call A collects the premium, while buying Call B limits potential losses, resulting in a profit when the stock price falls.
- Case study
Let's imagine a made-up company called TECH.
Right now, TECH's stock price is $190 per share. You think the stock price will show a moderate downward trend in the near future, but not a huge drop. So, you decide to build a Bear Call Spread strategy.
You sell a Call option (Call A) with a $190 strike, getting a $4 premium, and simultaneously buy a Call option (Call B) with a $200 strike, paying a $2 premium.
 |  |  |
4. Bear Put Spread
- Overview
Bear put spread is an options strategy where you sell Put A at a lower strike and buy Put B at a higher strike. Both options are on the same underlying asset and have the same expiration date. This strategy offers limited profit potential while also capping potential losses.
- Features
- Components
- Profit source
Buying Put B provides protection and generates profits when the stock price falls, while selling Put A collects the premium to offset the cost of buying Put B.
- Case study
Let's imagine a made-up company called TECH.
Right now, TECH's stock price is $80 per share. You think the stock price will show a moderate downward trend in the near future. So, you decide to build a Bear Put Spread strategy.
You sell a Put option (Put A) with an $80 strike, getting a $3 premium, and simultaneously buy a Put option (Put B) with a $90 strike, paying a $6 premium.
 |  |  |
Office hours of HK Hotline and Whatsapp: 9:00 - 18:00 * (GMT+8) on trading days
Office hours of Global Hotline: Trading days 24 hours; Non-trading days 9:00 - 18:00 * (GMT+8)
Outside of the above service hours, if you have any questions, please contact our online customer service.
Office hours of online customer service:
© 2026 Longbridge
* Offers are subject to terms and conditions
A licensed corporation recognized by the SFC (CE No. BPX066). Holder of License Types 1 (Dealing in Securities), 2 (Dealing in Futures Contracts), 4 (Advising on Securities) and 9 (Asset Management). Also a registered HKEX participant and HKSCC participant.
Registered with the Monetary Authority of Singapore (MAS), Long Bridge Securities Pte. Ltd. is a Capital Markets Services Licence holder and Exempt Financial Adviser (Licence No. CMS101211).
A broker dealer registered with the Securities and Exchange Commission (SEC)(CRD: 314519/SEC: 8-70711), a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).
New Zealand registered Financial Service Provider (FSP number: FS600050) and a member of the Financial Dispute Resolution Scheme, a New Zealand independent dispute resolution service provider.
The content and materials published here on this website is for general information only and should not be regarded or deemed to be an offer, invitation, or solicitation, recommendation or advice to buy, sell, subscribe or dispose of any investment products or financial services. It does not take into account the specific personal circumstances, investment objectives, financial situation or particular needs of a person and may be subject to change without notice.
Please consult your financial or other professional advisers if you are unsure about the information contained herein. Investments involve risks. Be aware that investments may increase or decrease in value and that past performance is no guarantee of future returns, you may not get back the amount originally invested. You should not make any investment decision based on this content alone.