Sample Study: Defined-Risk Bull Call Spread
A clearly labeled hypothetical example showing the required thesis, structure, risk, break-even, and exit-plan fields.
Purpose
This hypothetical example demonstrates how Options Blog trade studies should document assumptions before discussing outcomes. It is not based on a live recommendation.
Initial thesis
Assume a stock trades at $100 and the educational thesis is a moderate rise during the next month, with a willingness to risk a fixed debit.
Hypothetical structure
Buy one 100-strike call and sell one 105-strike call with the same expiration for a net debit of $2.00 per share, or $200 using a standard 100-share multiplier.
Expiration math
- Maximum simplified loss: $200
- Maximum simplified profit: $300
- Break-even: $102
Invalidation and exit plan
The thesis would be reconsidered if the expected catalyst disappeared, liquidity deteriorated, or the risk no longer fit the portfolio plan. A real study would record proposed profit, loss, and time-based exit rules before entry.
Outcome
No market outcome is attached because this is a setup-template demonstration. Real studies should retain both winning and losing outcomes and clearly state execution assumptions.