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

Ratio Spread

Ratio Spread

Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.


NOB spread

NOB spread

Notes over bonds spread. This is the difference in yield between Treasury notes (maturing in 2 to 10 years) and Treasury bonds (maturing in 15 or more years), which is traded using Treasury note and bond futures.


Yield spread strategies

Yield spread strategies

Investments that position a portfolio to capitalize on expected changes in yield spreads between sectors of the bond market.


Diagonal spread

Diagonal spread

An options strategy involving the simultaneous purchase and writing of two options of the same type that have different strike prices and different expiration dates. Example: buying 1 Dec 50 call and writing 1 Oct 55 call.


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.


Further Suggestions

Yield spread
credit spread
call spread
crack spread
calendar spread
bid/offer spread
Interdelivery spread
Butterfly spread
Dealers spread
Intramarket sector spread
Generic credit spread
Delta Spread
Bid/ask spread
box spread
Intermarket sector spread
Put ratio backspread
Ratio Calendar Spread
Bull spread
Intracommodity spread
Narrowing the spread
spread betting
Vertical spread
condor spread
Spread position
Relative yield spread


 
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