A bull call spread is an option strategy that involves the purchase of a call option, and the simultaneous sale of another option with the same expiration date but a higher strike price. (investopedia.com)
Prior to opening an account with Capital Wealth Planning, clients are required to understand the risks associated with the purchase or sale of options by receiving the Options Clearing Corporation Publication, «Characteristics and Risks of Standardized Option Trading». (capitalwealthplanning.com)
There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared to a single option trade. (fidelity.com)