Bear Call Spread Calculator
Search a symbol to visualize the potential profit and loss for a bear call spread option strategy.
What is a bear call spread?
A bearish vertical spread strategy which has limited risk and reward. It combines a short and a long call which caps the upside, but also the downside.
The goal is for the stock to be below strike A, which allows both calls to expire worthless. This strategy is almost neutral to changes in volatility. Time-decay is helpful while it is profitable, but harmful when it is losing.
- Sell a call at strike A
- Buy a call at strike B