Bear call spread - Financial definition
Financial acronyms
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Concise definition of the term bear call spread
An option strategy consisting of the purchase of a (cheaper) call with a high strike price and the simultaneous sale of a (more expensive) call with a lower strike price in the expectation of falling prices.
Comprehensive definition of the term bear call spread
The maximum profit to be realized with this strategy is the net premium received, i.e. the difference between the premium received minus premium paid. The maximum loss is calculated by subtracting the net premium received from the difference between the hig strike price and the low strike price (high strike price - low strike price net premium received).