Bear Call Spread options strategy
A bear call spread sells a lower-strike call and buys a higher-strike call, collecting a net credit that is kept if the underlying stays below the short strike.
How the bear call spread is built
Sell the 200 call for 8 and buy the 210 call for 4, for a net credit of 4.
Profit and loss at expiration
The expiration payoff is calculated as: Profit = net credit − max(S − 200, 0) + max(S − 210, 0).
- Maximum profit
- The net credit received = $4 per share.
- Maximum loss
- Difference between strikes − net credit = (210 − 200) − 4 = $6 per share.
- Breakeven
- Lower strike + net credit = 204.
Worked example
At an expiration price of 195, both calls expire worthless and you keep the full $4 credit per share.
When to use it
Use it when you expect the underlying to stay below the short strike and want to collect premium with defined risk.
Managing the risk
The long higher-strike call caps the loss, making this a defined-risk credit strategy.
Frequently asked questions
Is a bear call spread a credit or debit trade?
It is a credit spread — you receive a net premium when you open it.
What is the best outcome for a bear call spread?
The underlying finishing below the short strike, so both calls expire worthless and you keep the credit.
Model this strategy
Open the free OptCurve calculator to plot the bear call spread payoff, mark breakevens, and overlay it with other strategies.
Open the P&L calculator