Bear Call Spread

This video is your complete guide to adjusting risk-defined strategies, such as credit spreads, iron condors, and calendar spreads.

Traders with small accounts should use risk-defined options trading strategies and avoid strategies with undefined risk.

It is important to have an options portfolio with a combination of multiple strategy types each month. This enables you to spread positions out and increases the probability of having profitable trades in any market condition.

This the first call spread adjustment you should make to reduce your overall risk in the trade.

If you are bearish and want to trade an option spread strategy, implied volatility is the main factor when deciding between bearish put debit spreads and bearish call credit spreads.

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.

The custom naked put is a bullish options strategy that combines two strategies, which provides some downside protection if the stock moves lower. Think of the strategy as entering an iron condor without the long put.