 Break even point= Lower strike price+ Net premium paid

This strategy is also called a call debit spread because it causes the trader to incur a debit (spend money) up front to enter the position.The trader will realize maxiumum profit on the trade if the underlying closes above the short strike on expiration.A bull put spread is constructed by selling higher striking in-the-money put options and buying the same number of lower striking out-of-the-money put options on the same underlying security with the same expiration date.