A bear call spread is bearish-to-neutral and built for a credit. You sell a lower-strike call and buy a higher-strike call to cap the risk. You profit…
Bets on a drop or sideways move while collecting a credit.
Curve at expiration · dashed line = breakeven · gold ticks = strikes
A bear call spread is bearish-to-neutral and built for a credit. You sell a lower-strike call and buy a higher-strike call to cap the risk. You profit if the underlying stays below the short strike.
Use it when you think the underlying will fall or trade sideways and you want time on your side. It mirrors the bull put spread, but with calls.
With the example values already loaded in the calculator above, this strategy returns:
The numbers above come from the same engine as the calculator — change the fields to see your own scenario.
The max loss is the strike width minus the credit and happens if the underlying rises above K2. The breakeven is K1 + credit.
When you want time on your side. A bear call spread profits if the underlying falls or stalls; a naked put needs a real drop.
No. The long higher-strike call caps the loss.