Build and test a bull call spread

Contract legs

Both calls must use the same underlying, expiration and quantity. Select the lower strike for the purchased call and the higher strike for the sold call in the options builder.

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Payoff inputs

For one share of underlying, maximum expiration loss is the net debit. Maximum expiration gain is the strike width minus that debit. The breakeven is the lower strike plus the debit. Scale by each contract's actual multiplier and quantity; fees reduce the payoff.

These formulas describe expiration payoff. Quotes, early exercise, assignment and closing costs affect the result before expiration. Do not treat a payoff diagram as a backtest.

Worked expiration example

With a lower strike of $100, a higher strike of $110 and a $3 net debit per underlying share, expiration breakeven is $103. Maximum loss is $3 and maximum gain is $7 per share before fees. For a contract multiplier of 100, one spread has a $300 debit and a $700 maximum expiration gain before fees. These are hypothetical payoff inputs, not market quotes or a backtest result.

Build the strategy

Open Options Trading, choose a vertical spread, and define the underlying, expiry selection and strike selection for both legs. Inspect the generated contracts and allocation before saving the strategy.

Check that the saved spread still has one purchased lower-strike call and one sold higher-strike call with matching expiration and quantity. After the test, inspect the selected contracts and entry premiums against the configured selectors. If either leg lacks a quote or the run cannot resolve an expiration, fix the data or selector issue before interpreting the payoff. Backtest the saved configuration and review missing quotes, fills and expiry behavior. A live broker must support multi-leg options and the account must have the required trading approval.