Why would I sell one contract for $32.50? That leaves me without a book with 399 contracts. How does that work? I understand selling them individually. I don't understand how I could sell just one contract for $32.50?

In a Bull Call Spread, you buy one contract and sell one contract of the same type (both calls) with different strike prices. The goal is to earn premium income and profit from an increase in the underlying stock price, while limiting your downside risk. Here's how the Bull Call Spread works: 1. **Buying the Higher Strike Call**: You buy the CIVI 2025 Aug 15 32.5 CALL. This gives you the right, but not the obligation, to buy the stock at $32.5 per share. 2. **Selling the Lower Strike Call**: You sell the CIVI 2025 Aug 15 27.5 CALL. This gives you the right, but not the obligation, to sell the stock at $27.5 per share. By selling the lower strike call (the 27.5 CALL), you're creating a premium income stream. The premium you receive from selling this option will depend on the difference in strike prices, the implied volatility, and the time to expiration. In your case, you're buying the 32.5 CALL and selling the 27.5 CALL. This means you're paying a premium for the right to buy at $32.5, but you're also earning a premium from selling the right to sell at $27.5. The premium you receive from selling the lower strike call offsets the cost of buying the higher strike call. When you sell one contract for $32.50, you're selling the CIVI 2025 Aug 15 32.5 CALL. This means you're earning premium income from the buyer, who has the right to buy the stock at $32.5 per share. In return, you're giving up some of your rights as the buyer of the 32.5 CALL. Here's the key: when you sell the 32.5 CALL, you're not selling 399 contracts. You're selling one contract. The contract represents a share of the underlying stock (in this case, CIVI). When you buy or sell an option contract, you're essentially agreeing to buy or sell the underlying asset (CIVI stock) at a predetermined price (the strike price) on or before a specific date (the expiration date). In summary, when you sell one contract for $32.50, you're selling the right to buy CIVI stock at $32.5 per share. The premium you receive ($32.50) is the price at which the buyer is willing to exercise their option.