Here's a Great Strategy - And That Aint No Bull!
One trading strategy, that is very smart and gaining a lot of attention in the ‘Bull call spread’ strategy. This trading strategy is like a ‘double edged sword’. If the things are going in the trader’s benefit, he can earn huge sums of profits with minimum risk. On the contrary if the conditions are not in his favor, he might suffer from immense losses; that is only if he has not devised a clear strategy. Careful thought needs to be given before jumping into this trading strategy by newcomers.
Defining a Bull Call Spread
The Bull Call Strategy can be compared to Chess game. By making a few right moves, traders can earn a lot of money. Although this is a simple strategy, but the consequences of your decision can be immaculate. First of all you need to purchase the call options for your core asset. This idea can be beneficial to you if the price of the asset is expected to rise over time, till it reaches the expiry date. In the second step, you need to make the selling equal to the number of calls for the particular asset, keeping in mind the expiry date. You can earn a huge profit from the difference in two strike prices.