Options Simulator Terminal
Build, analyze, simulate and manage options strategies with payoff analysis, Greeks, volatility, scenarios and portfolio risk overlay.
This Bull Call Spread position is positive theta (time decay helps).
This Bull Call Spread on AAPL has a breakeven at $192.15. Maximum profit is $785, capped at the short strike. Maximum loss is limited to $215. Probability of profit estimated at 55%.
A Bull Call Spread is a defined-risk, defined-reward bullish strategy. It buys a lower-strike call and sells a higher-strike call with the same expiration.
Profits when the underlying rises above the lower breakeven before expiration. Maximum profit is achieved when the underlying closes above the short strike at expiration.
Loses when the underlying stays below the long strike, or if time decay erodes the position before a significant move up.
Time decay (theta) works against this position. The stock must move up meaningfully before expiration.
Defined maximum loss (net premium paid). Lower cost than a straight long call. Defined-risk bullish exposure.
Capped upside. Requires the stock to rise enough to overcome time decay.
Moderately bullish market with low-to-moderate IV. Stock expected to rise gradually before expiration.
Sideways or declining market. High IV environment (expensive options). Very slow market.
Stock price relative to breakeven. Time remaining. IV changes after entry.
Set a stop loss at 50% of net debit paid. Consider closing before final 14 days to avoid full theta decay.
Suitable for investors who are moderately bullish but want to limit maximum risk.