How do I read moneyness inside a bull call spread?
A bull call spread buys a lower-strike call and sells a higher-strike call. Then you compare the current stock price with each strike.
If the stock is 54, the long 50 call is in the money and the short 60 call is out of the money. If the stock is 48, both calls are out of the money. If the stock is 63, both calls are in the money.
The strategy remains a bull call spread in all three cases because the structure is long the lower-strike call and short the higher-strike call. Moneyness changes with the relationship between S and each strike.
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