In trading, what is the primary goal of options trading strategies like bull spreads?

The primary goal of options trading strategies like bull spreads is to enhance capital preservation and optimize returns. Bull spreads specifically focus on profiting from a moderate increase in the price of the underlying asset while limiting risk exposure. This is achieved by buying an option at a lower strike price and simultaneously selling another option at a higher strike price.

In doing so, traders can capitalize on favorable market movements while protecting themselves against steep losses — a hallmark of well-structured options strategies. By maintaining a defined profit and loss range, bull spreads allow traders to participate in potential upward price movements without taking on excessive risk. This risk management aspect is essential in achieving capital preservation while still aiming for potential gains.

Other options might suggest different objectives, such as increasing risk or minimizing transaction costs, but these do not reflect the strategic intent behind bull spreads, which is fundamentally about balancing risk and return in a way that seeks to foster steady gains within a controlled risk environment.