Bull call debit spreads are a type of options trading strategy that involves buying a call option on a stock with a low strike price and selling a call option on the same stock with a higher strike price. The goal of this strategy is to make a profit when the underlying stock's price increases, while limiting the potential loss to the difference in the strike prices of the two call options, minus the initial cost of the trade. Overall, bull call debit spreads can be a useful strategy for investors who want to take a bullish position on a stock, but who want to limit their potential loss in the event that the stock does not perform as expected.
Max Profit: Maximum profit is limited to the difference between the strike values minus the debit cost.
Max Loss: Maximum loss is limited to the premium paid.