Bear call spread

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The bear call spread is a limited profit, limited risk options trading strategy that can be used when the options trader is moderately bearish on the underlying security. It is entered by buying call options of a certain strike price and selling the same number of call options of lower strike price on the same underlying with the same expiration month.

Contents 1 Related 2 See also 3 Options 4 References

[edit] Related

• Black-Scholes formula
• Covered call
• Moneyness
• Naked put
• Option
• Option time value
• Option style
• Put option
• Put-call parity

[edit] See also

• CBOE
• Derivative (finance)
• Derivatives markets
• Financial economics
• Financial instruments,Finance
• Futures contracts
• Option screeners

[edit] Options

• Binary option
• Bond option
• Credit default option
• Exotic interest rate option
• Foreign exchange option
• Interest rate cap and floor
• Options on futures
• Real option
• Stock option
• Swaption
• Warrant

[edit] References

• McMillan, Lawrence G. (2002). Options as a Strategic Investment, 4th ed., New York : New York Institute of Finance. ISBN 0-7352-0197-8.

Financial derivatives   Options Vanilla Types: Option styles | Call | Put | Warrants | Fixed income | Employee stock option | FX Strategies: Covered calls | Naked puts | Bear Call Spread | Bear Put Spread | Bull Call Spread | Bull Put Spread | Calendar spread | Straddle | Long Straddle | Long Strangle | Butterfly | Short Butterfly Spread | Short Straddle | Short Strangle | Vertical spread | Volatility arbitrage | Debit Spread | Credit spread | Synthetic Exotics: Asian | Lookbacks | Barrier | Binary | Swaptions | Mountain range Valuation: Moneyness | Option time value | Black-Scholes | Black | Binomial | Stochastic volatility | Implied volatility See Also: CBOE | Derivatives market | Option Screeners | Option strategies Swaps Interest rate | Total return | Equity | Credit default | Forex | Cross-currency | Constant maturity | Basis | Variance