Definitions for "BEAR CALL SPREAD"
In the Trade Finder, a vertical credit spread using calls only. This is a net credit transaction established by selling a call and buying another call at a higher strike price, on the same underlying, in the same expiration. It is a directional trade where the maximum loss = the difference between the strike prices less the credit received, and the maximum profit = the credit received. Requires margin.
An option strategy designed to benefit from falling prices by purchasing a call option with a high exercise price and selling one with a low exercise price.
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. 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 credit; Maximum gain = credit; requires margin.