You purchased one BCE March 50 call and sold one BCE March 55 call.Your strategy is known as

Question

Quizplus · Accepted Answer

The strategy of purchasing one call option while simultaneously selling another call option with a different strike price is known as a vertical spread. This particular vertical spread is known as a bear call spread, where the investor expects the underlying stock (in this case, BCE) to either decrease in price or remain below the strike price of the sold call option (in this case, 55). This spread profits from the difference between the premiums received from selling the call option with the higher strike price and the premium paid to purchase the call option with the lower strike price.

You Purchased One BCE March 50 Call and Sold One