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Bear call spread calculator
Bearish credit. Sell a call and buy a higher call to cap upside risk.
OutlookBearish
Max profitLimited
Max lossLimited
LevelIntermediate
What is a bear call spread?
A bear call spread wants the stock to stay below the short call. Max profit is the credit. Max loss is the width minus that credit if the stock finishes above the long call.
Legs
- Sell a call at strike A
- Buy a call at strike B
Live example on SPY
Bear Call Spread
Net credit$24.50
Max loss$175.50
Max profit$24.50
Chance of profitLocked: ProUpgrade
BreakevenBelow $800.24 (+5.9%)At expiration
- 800C−112/18 · $2.14
- 802C+112/18 · $1.90
With SPY at 755.53, on the Dec 18 expiration (49 days out): sell 1 800 call and buy 1 802 call. Net credit $24.50. Max profit $24.50; max loss $175.50. Breakeven at expiration: Below $800.24 (+5.9%).
Open this bear call spread in the calculator to move the strikes, change the date and implied volatility, and read profit and loss by price and date.
Questions
- What is a bear call spread?
- A bear call spread wants the stock to stay below the short call. Max profit is the credit. Max loss is the width minus that credit if the stock finishes above the long call.
- When does a bear call spread make money?
- Bearish credit. Sell a call and buy a higher call to cap upside risk.
- What is the max profit of a bear call spread?
- Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.
- What is the max loss of a bear call spread?
- Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.
- How do I calculate a bear call spread's profit and loss?
- Open the bear call spread in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.