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Bear Call Spread




A strategy in which a trader sells a lower strike call and buys a higher strike call to create a trade with limited profit and limited risk.


Additional Comments:

A fall in the price of the underlying increases the value of the spread. Net credit transaction; maximum loss = difference between the strike prices less net credit; maximum gain = net credit.

Related Terms:

Bull Put Spread
A strategy in which a trader sells a higher strike put and buys a lower strike ...

Bull Call Spread
A strategy in which a trader buys a lower strike call and sells a higher strike ...

Bear Put Spread
A strategy in which a trader sells a lower strike put and buys a higher strike ...





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