39.3 Lessons learnt

What have we learnt?

• A bull call spread consists of a bought call option and a sold call option with a higher strike price.
• The buyer of a call spread anticipates the underlying value will increase. There is, however, a maximum profit. 
• By accepting a maximum, he will receive a premium for the sold call option, so his investment is lower.
• With a bear call spread, the sold call option has a lower strike price than the purchased call option. This way, the investor gets a premium!
• A (naked) sold call option means an unlimited risk because an investor does not hold the underlying value.
• Adding a bought call option with a higher strike price results in a capped maximum risk. The total premium will be lower.