What is a 'Bear Call Spread'
A bear call spread is a type of options strategy used when a decline in the price of the underlying asset is expected. It is achieved by selling call options at a specific strike price while also buying the same number of calls, but at a higher strike price. The maximum profit to be gained using this strategy is equal to the difference between the price paid for the long option and the amount collected on the short option.
BREAKING DOWN 'Bear Call Spread'
For example, let's assume that a stock is trading at $30. An option investor has purchased one call option with a strike price of $35 for a premium of $0.50 and sold one call option with a strike price of $30 for a premium of $2.50. If the price of the underlying asset closes below $30 upon expiration, then the investor collects $200 (($2.50  $0.50) * 100 shares/contract).

Bull Call Spread
An options strategy that involves purchasing call options at ... 
Bear Put Spread
A type of options strategy used when an option trader expects ... 
Call Ratio Backspread
A very bullish investment strategy that combines options to create ... 
Bull Put Spread
A type of options strategy that is used when the investor expects ... 
Strike Price
The price at which a specific derivative contract can be exercised. ... 
In The Money
1. For a call option, when the option's strike price is below ...

Active Trading
How To Manage A Bull Call Spread
A bull call spread, also called a vertical spread, involves buying a call option at a specific strike price and simultaneously selling another call option at a higher strike price. 
Options & Futures
Three Ways to Profit Using Call Options
A brief overview of how to provide from using call options in your portfolio. 
Options & Futures
The Basics of Options Profitability
The adage "know thyself"and thy risk tolerance, thy underlying, and thy marketsapplies to options trading if you want it to do it profitably. 
Options & Futures
Understanding Bull Spread Option Strategies
Bull spread option strategies, such as a bull call spread strategy, are hedging strategies for traders to take a bullish view while reducing risk. 
Options & Futures
What's the Strike Price?
The strike price is the price at which a derivative can be exercised, and refers to the price of the derivativeâ€™s underlying asset. In a call option, the strike price is the price at which the ... 
Options & Futures
Getting Acquainted With Options Trading
Learn more about stock options, including some basic terminology and the source of profits. 
Professionals
F. Characteristics of All Options
All option contracts are issued and their performance is guaranteed by the Options Clearing Corporation (OCC). Standardized options trade on the exchanges, such as the Chicago Board Options Exchange ... 
Professionals
OPTION PREMIUMS
Option Premiums The price of an option is known as its premium. Factors that determine the value of an option and, as a result, its premium, are: The Relationship of The Underlying Stock Price ... 
Professionals
Alternative Investments
Alternative Investments 
Trading Strategies
A Guide Of Option Trading Strategies For Beginners
Options offer alternative strategies for investors to profit from trading underlying securities, provided the beginner understands the pros and cons.

How are call options priced?
Learn how aspects of an underlying security such as stock price and potential for fluctuations in that price, affect the ... Read Answer >> 
What options strategies are best suited for investing in the utilities sector?
Learn about option strategies investors can use to take a position in the utility sector, including covered calls and option ... Read Answer >> 
What is the difference between in the money and out of the money?
Learn about how the difference between in the money and out of the money options is determined by the relationship between ... Read Answer >> 
How does the term 'in the money' describe the moneyness of an option?
Find out what in the money means about the moneyness of call or put options and what it indicates about the relationship ... Read Answer >> 
How do I set a strike price for an option?
Learn about the strike price of an option and how to set a strike price for call and put options depending on risk tolerance ... Read Answer >> 
What options strategies are best for investing in the industrial sector?
Learn a couple of popular options trading strategies that can be used by investors seeking to enhance their profits from ... Read Answer >>