Bullish Seagull option strategy
Bullish Seagull is a bull call spread paid for by selling an OTM Put. It gives upside up to the short call at little or no cost, in exchange for downside risk below the put strike.
Payoff at expiry
Nifty, lot size 65 · Nifty future 22,788 · 19 Oct 2026Legs
| Action | Option | Strike | Lots | Qty | Premium |
|---|---|---|---|---|---|
| BUY | ATM Call | 22,800 | 1 | 65 | ₹113.86 |
| SELL | OTM Call | 22,900 | 1 | 65 | ₹72.27 |
| SELL | OTM Put | 22,700 | 1 | 65 | ₹80.83 |
How it works
- Buy 1 ATM call at the 22,800 strike for ₹113.86, paying the premium.
- Sell 1 OTM call at the 22,900 strike for ₹72.27, collecting the premium.
- Sell 1 OTM put at the 22,700 strike for ₹80.83, collecting the premium.
- You receive a net ₹2,551 upfront for the position. Your maximum profit is ₹9,051.
Below 22,661 you lose, and the loss grows as Nifty falls.
Above 22,661 you profit, up to ₹9,051.
Set-up: Buy 1 lot ATM Call, Sell 1 lot OTM Call and Sell 1 lot OTM Put with same expiration date.
What happens if Nifty moves
Profit or loss at expiry| Nifty at expiry | Move | Profit / loss |
|---|---|---|
| 21,400 | −6% | −₹81,949 |
| 22,100 | −3% | −₹36,449 |
| 22,550 | −1% | −₹7,199 |
| 22,800 | Unchanged | +₹2,551 |
| 23,000 | +1% | +₹9,051 |
| 23,450 | +3% | +₹9,051 |
| 24,150 | +6% | +₹9,051 |
How the Greeks affect it
When to use
When you are bullish, expect a move up to a target, and are comfortable owning the downside below the put strike.
- Low or zero cost to enter.
- Wide zone between the put and the calls with little loss.
- Popular with traders for a defined upside target.
Things to watch
- Uncapped downside below the put strike.
- Upside is capped at the short call.
- Requires margin for the short put.
Bullish Seagull: questions
What is a Bullish Seagull strategy?
Bullish Seagull is a bull call spread paid for by selling an OTM Put. It gives upside up to the short call at little or no cost, in exchange for downside risk below the put strike.
When should you use a Bullish Seagull?
When you are bullish, expect a move up to a target, and are comfortable owning the downside below the put strike.
How do you set up a Bullish Seagull?
Buy 1 lot ATM Call, Sell 1 lot OTM Call and Sell 1 lot OTM Put with same expiration date.
What is the maximum profit of a Bullish Seagull?
Limited to the call spread width plus or minus the net premium, if the underlying closes at or above the short call.
What is the maximum loss of a Bullish Seagull?
Substantial below the put strike, as the short put loses with every fall in the underlying.
What is the breakeven of a Bullish Seagull?
With Nifty at 22,788, the example on this page breaks even at 22,661 at expiry.
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