Options Strategy
Bull Call Spread - Nifty 50
Buy a lower strike call and sell a higher strike call in the same expiry. The premium received from the short call reduces your net cost but caps your maximum profit at the higher strike.
Leg 1 — BUY
24,000 CE
Pay premium: ₹375
Leg 2 — SELL
24,500 CE
Receive premium: ₹180
Net debit
₹14,625
Max loss (per lot)
Breakeven
24,195
Lower strike + net debit
Max profit
₹23,625
Capped at upper strike
Reward / Risk
1.6 : 1
Max profit ÷ max loss
Adjust your trade parameters
Below lower strike
Both options expire worthless. Lose net debit paid — your full risk.
At breakeven
Lower strike + net debit per point. The spread just covers its cost.
Between strikes
Profit grows point by point as Nifty rises above breakeven.
Above upper strike
Max profit locked in. Short call caps any further gain beyond here.
Bull Call Spread vs Long Call: A plain Long Call on the 24,000 strike costs ₹375 pts with unlimited upside. The spread costs only ₹195 pts net — 48% cheaper — but profit is capped at the 24,500 strike. Use the spread when you expect a moderate rally, not a runaway move.
How to execute on NSE
1
Open the Nifty 50 options chain and select the same expiry for both legs weekly or monthly.
2
BUY the lower strike Call (e.g. 24,000 CE). This is your directional leg.
3
SELL the higher strike Call (e.g. 24,500 CE) in the same order window. Net debit = Buy premium − Sell premium.
4
Most brokers let you place both legs as a spread order — this avoids leg risk (one leg executing without the other).
5
Exit both legs together before expiry if your target is hit, or hold to expiry for automatic cash settlement.
Key risks to know
Capped upside: If Nifty rallies strongly beyond the upper strike, you gain nothing extra. A plain Long Call would outperform in that scenario.
Time decay (Theta): Works slightly in your favour. The short call loses value faster near expiry but the net position still bleeds if Nifty stays flat.
Strike width matters: Wider spread = higher max profit but higher net debit. Narrower spread = cheaper but less room to earn. Match the width to your Nifty target move.
Leg risk on manual entry: If placing legs separately, always use spread orders or place both simultaneously to avoid one-sided exposure.