The Bear Call Spread Option Strategy Explained

Discover the intricacies of the Bear Call Spread Option Strategy, also known as the bear credit spread, call credit spread, or vertical bear call spread, with Ryan O'Connell, CFA, FRM, in this detailed tutorial. Learn how this approach can help manage risk and enhance profits through a step-by-step breakdown of selling a call with a lower strike price and buying a call with a higher strike price. Understand the fundamentals, including call option definitions and short call option profits, leading up to a thorough explanation of bear call spreads. Explore how this vertical spread strategy can be a powerful tool in options trading. By the end of this video, you'll grasp how to effectively implement the Bear Call Spread Option Strategy and analyze potential profits and losses.

🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.

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Chapters:
0:00 - Intro to Bear Call Spreads Explained
0:33 - Call Option Definition
0:55 - Short Call Option Profits Explained
3:24 - Bear Call Spread Definition
4:23 - Step 1: Sell a Call W/ Lower Strike Price
4:47 - Step 2: Buy a Call W/ Higher Strike Price
6:23 - Bear Call Spread Profits & Losses

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

[RyanOConnellCFA]

🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.


📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*

[pizzaandmeth]

Got back from Vacation and bout to start my final review for Level 3. Watching this sure beats reading the Kaplan examples lol.. Cheers Ryan.

[JonK-X]

What if the strike price is 56. Now you're losing your shares for the short call but can you exercise the long call even if it's not at the money to buy your shares back?

[kazemizu]

So, if the stock is dropping like crazy, this is a no go??