Bear Call Spread
A bear call credit spread is a multi-leg, risk-defined, bearish strategy with limited profit potential. A bear call spread is entered when the seller believes the price of the underlying asset will be below the short call option’s strike price on or before the expiration date.
Kirk Du Plessis
Apr 19, 2021
Bear call credit spreads are strategies that are designed to profit from a directional move down in the underlying stock and a drop in the underlying implied volatility. These are high probability strategies where you are a net seller of options above the market price and you are looking for those options to decay in value and become worthless at expiration.
No tags found.
