Bear Call Spread Calculator
bearishA bear call spread is a vertical credit spread: you sell a lower-strike call and buy a higher-strike call. You collect a net credit and profit if the stock stays below the short strike.
Max Profit
Net credit received × 100
Max Loss
(Width of strikes − Net credit) × 100
Break Even
Short strike + Net credit
When to Use a Bear Call Spread
- You are neutral to mildly bearish
- You want to sell premium and collect theta
- Implied volatility is elevated
- You want defined risk compared to a naked short call
Risks
- You lose if the stock rises above the short strike plus credit
- Max loss exceeds max profit
- Early assignment risk on the short call
How a Bear Call Spread Works
Sell a call at strike A and buy a call at strike B (B > A), same expiration. You collect a net credit and want the stock to stay below strike A.
Example
AAPL at $195. Sell the $195 call for $5.40, buy the $200 call for $3.00. Net credit: $2.40 ($240).
Key Takeaway
Bear call spreads are the bearish cousin of the bull put spread. Sell premium, collect theta, profit when the stock stays flat or drops.