Spreads: capping both risk and reward
Build a bull call spread and work out its maximum loss, maximum gain and breakeven.
Module 12 of 26, Options for beginners, in practice. Lesson 4 of 6, about 16 minutes.
The takeaway
A spread cuts your upfront cost and your risk, but caps your win. The sold leg caps your profit and can be assigned early.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.