What is the primary benefit of a Bull Call Spread?

The primary benefit of a Bull Call Spread lies in its ability to reduce the cost of purchasing a call option. This strategy involves buying a call option at a lower strike price while simultaneously selling another call option at a higher strike price, both with the same expiration date. By selling the higher strike call, you effectively offset some of the cost of the call you purchased, which lowers the overall investment needed to implement the strategy.

This spread is designed for a bullish outlook, allowing the investor to benefit from a moderate increase in the asset's price while keeping the costs down compared to simply buying a single call option. The combination of these two trades not only minimizes initial outlay but also provides a limited risk profile, as the maximum loss is capped at the net premium paid for the spread.

In this context, the other options do not align with the key characteristics of a Bull Call Spread. Unlimited profit potential is typical of a simple long call position but not of a spread, while increasing risk or only being applicable in bearish conditions contradicts the fundamental purpose of the strategy, which is to capitalize on expected upward price movement in a limited-risk manner.