Bull Call Spread is the strategy you can use to profit from moderate rise in profit of underlying security.
What you do here is that you buy 1 Call Option and also sell a higher value Put Option
Example lets say current value of nifty is 5000 and lot size is 50. If the nifty call option is available for Rs 70 for the strike price of 5000 and sell call option position of 5200 for Rs 40.
Net money taken initially would be 70-40 = Rs 30*50.
A person will profit if Nifty stays between 5070 and 5160.
Maximum loss will be amount paid = Rs 30*50.
ON the expiry if nifty is at 5120 then first contract will give profit of 120*50 = 6000 and second contract will become worth less = 40*50 = 2000, so the net profit will be 4000.
Both the contract should have same lot size and should expire in the same series.
This strategy was buying ans selling Call Options if the same thing is done with Put options then it is called Bull Put Spread.
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Establishing a bull call spread involves the purchase of a call option on a particular underlying stock, while simultaneously writing a call option on the same underlying stock with the same expiration month, at a higher strike price. Both the buy and the sell sides of this spread are opening transactions, and are always the same number of contracts. This spread is sometimes more broadly categorized as a "vertical spread": a family of spreads involving options of the same stock, same expiration month, but different strike prices. They can be created with either all calls or all puts, and be bullish or bearish. The bull call spread, as any spread, can be executed as a"unit" in one single transaction, not as separate buy and sell transactions. For this bullish vertical spread, a bid and offer for the whole package can be requested through your brokerage firm from an exchange where the options are listed and traded.
This strategy actually gets adopted by those betting on sports. Need to know what you're doing mind, much in the same way.
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