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Bear Call Spread
A bear call spread typically consists of: selling a lower strike call and buying a higher strike call with the same expiration. Market view Bearish to neutral.
Why it matters to you
The trader receives a net credit while the higher strike long call caps the upside risk of the short call. Maximum profit at expiration Generally the net credit. Maximum loss at expiration Strike width minus net credit, multiplied by the applicable multiplier.
Terms that sit next to this one
Short Call