Bearish Options Strategies
Learning how to make money in down markets is a critical component to your long-term success rate. The ability to profit when stocks are falling gives options traders a superior edge in the financial markets.
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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.
Bear Call Spread
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.

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Bear Put Spread
A bear put debit spread is a multi-leg, risk-defined, bearish strategy with limited profit potential. A bear put spread is entered when the buyer believes the underlying asset price will decline before the expiration date.

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