Bear Call Spread Profit Calculation
Learn how to calculate the maximum potential profit when trading a bear call credit spread.
A bear call spread, also known as a call credit spread or short call spread, has limited profit potential. The credit received at entry is the maximum profit possible for the position.
For example, if you sell a bear call spread for a net credit of $1.50, the most you can make on the position is $150 per contract if the underlying price is below the short call strike at expiration.
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