What "call spread" means in finance

A call spread is a trading strategy used in finance where an investor buys a call option with a certain strike price and simultaneously sells a call option with a higher strike price. This strategy limits the investor's potential profits but also limits their potential losses. The goal is to profit from the difference between the premium paid for the lower strike call option and the premium received for the higher strike call option. Call spreads can be used for a variety of reasons, including hedging against potential losses or speculating on the direction of the market.