Bull Call Spread on NIFTY: Low-Risk Way to Trade a Controlled Upmove

This is a Bull Call Spread on NIFTY for the 20 Jan 2026 expiry.

Structure shown:

• Buy NIFTY 25750 CE @ ₹172.90 (Qty: +65)
• Sell NIFTY 25950 CE @ ₹87.50 (Qty: –65)

Net Cost (Debit):

• 172.90 – 87.50 = ₹85.40 per unit
• Lot size 65 → ₹85.40 × 65 ≈ ₹5,551
  (The UI shows “Capital Required ₹50,000” as a slider allocation or margin bucket, not the true strategy cost.)

Payoff Characteristics:

• Max Loss: Net debit = ~₹5,551
  (Occurs if NIFTY expires at or below 25750)
• Max Profit:
  Strike gap = 200 points
  Max profit per unit = 200 – 85.40 = ₹114.60
  Total = ₹114.60 × 65 ≈ ₹7,449
  (Achieved if NIFTY expires at or above 25950)
• Breakeven:
  25750 + 85.40 ≈ 25835

Market View:

• Moderately bullish.
• You expect NIFTY to move up and stay above ~25835 by expiry.
• Risk is strictly capped.
• Reward is capped.

Why use this:

• Cheaper than buying a naked call.
• Defined risk.
• Works well when you expect controlled upside, not a runaway rally.
• Time decay impact is lower than a single long call.

This is a clean, risk-defined directional trade suitable for small to mid capital with discipline.