Bear call spread

 

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Bear call spread

The purchase of a call with a high strike price against the sale of a call with a lower strike price.The maximum profit is the net premium received (premium received - premium paid), while the maximum loss is calculated by subtracting the net premium received from the difference between the high strike price and the low strike price (high strike price - low strike price net premium received). A bear call spread should be entered when lower prices are expected.



Similar Matches

Price spread

Price spread

An options strategy that involves buying and selling two options on the same security with the same expiration month, but with different exercise prices.


Spread option

Spread option

A position consisting of the purchase of one option and the sale of another option on the same underlying security with a different exercise price and/or expiration date.


Ratio spread

Ratio spread

Option strategy using either puts or calls. The trader purchases a certain number of options and then sells a larger number of out of the money options.


Yield spread

Yield spread

The difference in yield between different security issues usually securities of different credit quality.


Time spread strategy

Time spread strategy

Buying and selling puts and calls with the same exercise price but different expiration dates, and trying to profit from the different premiums of the options.


Further Suggestions

bull spread
Spread order
crack spread
Intermarket sector spread
backspread
NOB spread
Put ratio backspread
Selling the spread
Calendar spread
Butterfly spread
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call spread
Horizontal spread
bear put spread
Ratio Spread
Generic credit spread
Spread
Intercommodity spread
bid/offer spread
bid offer spread
Option spread
box spread
Bull spread
Spread income
Spreadsheet


 
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