A combination of a vertical and calendar spread. You buy a longer-dated ITM/ATM call and sell a shorter-dated OTM call. Like a covered call using a LEAPS option instead of stock. Benefits from time decay and directional movement.
Variable — depends on strikes and time decay
Net premium paid or debit
Varies with strikes and premiums
Short 1 near-term OTM Call + Long 1 longer-term lower-strike Call
Limited and variable profit. Limited risk. Benefits from time decay and mild directional moves.
When you're mildly bullish and want to profit from time decay. More capital efficient than owning shares. When you expect gradual rather than explosive upward movement.