Bear Call Spread
Outlook: Neutral
Vertical spreads
Short lower-strike call, long higher-strike call. Neutral-to-bearish, credit, theta-positive.
Max profit
Credit collected.
Max loss
(Strike width) - credit.
Breakeven
Short strike + credit.
Legs
Short
1×
call
ATM +5
Long
1×
call
ATM +10
Structure
Short 1 call at lower strike + long 1 call at higher strike, same expiration.
When to use
Defined ceiling thesis. Skew makes the same-delta bull put usually richer than a bear call.
Example
AAPL at $185. Short 190 call $3, long 195 call $1.50. Credit $1.50. Max profit $1.50, max loss $3.50, breakeven $191.50.
Notes
- Avoid in clear uptrends; trend persistence is the main enemy.
Build it in the simulator
Open this structure in the app, adjust spot, IV, and DTE, and watch the payoff and Greeks move.
Get the appRelated strategies
Bull Call Spread
Long lower-strike call, short higher-strike call. Bullish, defined risk, defined reward, debit.
Bear Put Spread
Long higher-strike put, short lower-strike put. Bearish, defined risk, debit.
Bull Put Spread
Short higher-strike put, long lower-strike put. Neutral-to-bullish, credit, theta-positive.