Option spreads involve simultaneously buying and selling options of the same class (calls or puts) with different strike prices and/or expiration dates. For example, a common spread is the bull call spread. This is where an investor buys a call option at a lower strike price and sells another one at a higher strike price.  This strategy allows the investor to capitalize on a moderate rise in the asset's price up to the higher strike. The maximum loss is limited to the net premium paid, and the maximum gain is capped at the difference between the two strike prices (minus the net premium). The bull call spread is ideal when a moderate upward price movement is expected.