Skip to main content

Bear Call Spread

Credit spread profiting from downward movement and time decay.

Intermediate

Market Outlook

bearish

Family

vertical

Capital Req

medium

Risk Profile

high

Strategy Overview

Key characteristics and when to use

Structure

Sell Call + Buy Higher Strike Call

Greek Profile

Negative delta, positive theta, negative vega

Characteristics

CreditBearishIntermediate

Profit & Loss Formulas

Mathematical breakdown

Max Profit

Net credit received

Max Loss

Spread width - net credit received

Breakeven

Short call strike + net credit received