Bull Call Ladder

bullish3 legs

Bull call spread + one more short call higher. Cheaper entry; risk above the top strike.

Payoff shape at expiration (illustrative)

Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.

How it works

A bull call spread plus one more short call higher up. The extra premium cuts the entry cost — sometimes to a credit — in exchange for losses if the stock rips past the top strike.

When to use it

Bullish to a level, confident it stops there. Best after a run-up when upside calls are bid and you are happy to fade the extreme.

What can go wrong

UNLIMITED above the top strike — the naked short call. A takeover rumor turns the "confident it stops there" assumption expensive fast.

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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.