# Call Verticals

A Long Call Vertical is a bullish strategy that consists of buying a call at a strike price and simultaneously sell a call at a higher strike price. The combination of these trades will limit the maximum reward, but will also minimize the the risk incurred.

Any profit is "realized" if the price of the underlying security is above the break-even price of the vertical. Maximum profit is "realized" if the price of the underlying security is equal to or above the strike price of the short call.

Any profit is offset by the total premium paid. With a Long Call Vertical, the total premium paid (maximum risk) equals the premium paid for buying the long call minus the premium received for selling the short call.

Short Call Vertical:

A Short Call Vertical is a bearish strategy that consists of selling a call option at a strike price and simultaneously buying a call option at a higher strike price. The combination of these trades will limit the maximum reward available, but will also limit the risk incurred.

Any profit is "realized" if the price of the security is below the break-price of the vertical. Maximum profit is "realized" if the price of the underlying security is equal to or below the strike price of the short call. In this situation, both options expire worthless.

Maximum profit equals the premium received for selling the short call minus the premium you paid for buying the long call.