However, in a spread position, you will have limited exposure, and limited profit potential. Another benefit is that the cost of getting into a spread is less compared to cost of trading in naked call or put trades. Since only call options are taken, hence the name CALL OPTION SPREAD or simply CALL SPREAD. Basically, the net position which you receive in an options spread position has limited scope of profit and limited scope of loss - that makes up the spread.
Hence, you pay something for buying one option position and receive something from selling another option position.
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