Bear Call Spread
Definition
A credit spread created by selling a call at a lower strike and buying a call at a higher strike, profiting from a decline or sideways move.
Example
A bear call spread has limited risk and limited reward.
Related Terms
Frequently Asked Question
What is a Bear Call Spread?
A Bear Call Spread is a credit spread created by selling a lower-strike call and buying a higher-strike call. It profits when the underlying declines or stays flat, with maximum profit equal to the net credit received.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.