Video Library

The Bear Call Spread: Structure and Expiration Scenarios

Debit and Credit Verticals

OIC instructor Mark Benzaquen explains how a bear call spread is set up, what the short and long call legs each do, and what happens to the position when the stock finishes above, between or below the strikes.

0:00 Setting Up a Bear Call Spread
1:02 Buying a Call for Upside Protection
1:32 Keeping the Net Credit at Expiration
2:04 Max Gain, Max Loss and Break-Even
3:30 Expiration Scenarios
6:19 A Worked Example With Numbers

Register to view the complete Understanding Credit Spreads: Mechanics and Applications webinar: https://bit.ly/4vqr8dU.

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