Bear Call Spread

From MarketPunter

A bull call spread is an options strategy in which the investors purchases a call option on an underlying asset and writing a call option on same underlying asset simultaneously with the same expiration month at a higher strike price.

Both the maximum payout and maximum losses are limited using a bear call spread.

establishing a bull call spread involves the purchase of a call option on a particular underlying stock, while simultaneously writing a call option on the same underlying stock with the same expiration month, at a higher strike price. Both the buy and the sell sides of this spread are opening transactions, and are always the same number of contracts.