Anavex Life Sciences Corp (AVXL)

[Steady_T]

The bull spread has the $25 calls being sold, not bought. The funds from selling those calls offsets some of the cost of buying the $10 calls.
That also puts a cap on the possible gains at $25 a share.

So those $25 calls would have to be bought back to close them out, or give up the shares acquired with the $10 options.

As far as the price of buying back the $25 calls, time is your friend. The time premium decreases as time goes by. Optimum case would be to have the SP be $24 on Jan 14th 2027 and have them expire worthless.

Depending on how things go, buying back the $25 calls before the expiration date may be an attractive choice.

My spread sheet showed that for a fixed amount of money put into the bull spread or straight $10 calls The spread makes more money than the calls until the SP hits about $43. The spread has a breakeven at about $11.7 a share so it seems a pretty safe approach.