2. Bull Call Spread Strategy Name: BULL CALL SPREAD Direction: Bullish Max. Risk: Capped Type: Capital Gain Volatility: N/A Max. Reward: Capped Proficiency: Intermediate Legs: 1: Buy lower Strike Calls 2: Sell higher Strike Calls Entry: Buy ATM call and sell a higher strike call with the same expiration and same quantity. Both Strike prices should above the current stock price. The net effect of the strategy is to bring down the cost and break even compared to simply buying a call.

3. Risk Profile : Net Debit: Premium Bought - Premium Sold Max. Risk: Premium Bought - Premium Sold Max. Reward: Differences in strikes - net debit BEP: Lower Strike + Net debit Investment: Net Debit ROI: Profit/Investment

4. Exit: if your expectations go wrong, simply buy back the calls you sold and selling the calls you bought in the first place. Otherwise go with leg up and down as the underlying asset fluctuates up and down. In this way, the trader will be taking smaller incremental profits from it.

5. Example: Month Long/Short Option Call/Future/Put Price Qty Oct Long 5600 Call 116 1000 Oct Short 5700 Call 57 1000 Net Debit: 59000 Max. Risk: 59000 Max. Reward: 41000 BEP: 5659 Investment: 59000 ROI: 69.4% @ UP: 5700 Risk/Reward: 1.43:1