Bearish strategy · Intermediate
Market outlook Moderately bearish
Short lower-strike call with protective higher-strike call.
Each row reprices every live leg independently. Entry premiums stay fixed.
| Underlying price | Move | Profit / loss |
|---|
Dollar-scaled for each leg's quantity, multiplier, expiry, and IV. Theta is per day; vega and rho are per one percentage-point move.
| Leg | Delta | Theta/day | Vega |
|---|
Strike configurations
Place the long call well above the short call for a larger credit but a bigger maximum loss.
Key difference: More premium collected upfront in exchange for a larger worst-case loss if the stock breaks out.
Best for: Traders confident the stock stays below a wide resistance level.
Sell a call strike well above the current price with a tight protective long call just above it.
Key difference: Small credit, but a high probability of expiring worthless (max profit) since both strikes are unlikely to be reached.
Best for: High-probability income trades with minimal directional conviction.
Common questions
The stock stays below the short call strike through expiration, both calls expire worthless, and you keep the full net credit received at entry.
A bear call spread is entered for a net credit and profits from time decay and the stock staying below the short strike, while a bear put spread is a debit trade that profits from the stock actually falling.
The width between the two strikes minus the net credit received, realized in full if the stock finishes at or above the higher (long) call strike at expiration.
Early assignment risk rises if the short call moves deep in-the-money, particularly just before an ex-dividend date, since the call holder may exercise to capture the dividend.
Deep dive
Detailed explanations, management techniques, and real-world scenarios
Scenario Lab
Explore how this position changes before expiration
Quick reference
Quick answers about when to use, capital needed, and key risks
Profit and loss
Compare max profit, max loss and break-even across common strategies
Custom calculator
Combine calls, puts, stock, quantities and different expirations
Risk sensitivity
Inspect Delta, Gamma, Theta, Vega and Rho
Same market view
Every bearish structure on the site, ranked by risk and capital needed
Same experience level
Structures with a comparable learning curve to the bear call spread
Head-to-head
Structure, cost, and breakeven differences compared side by side
Head-to-head
Structure, cost, and breakeven differences compared side by side
Head-to-head
Structure, cost, and breakeven differences compared side by side
This calculator uses exact intrinsic value at a leg’s expiration and Black–Scholes theoretical value while that leg remains open. Position Greeks use the same visible legs and model assumptions. Results exclude fees, tax, liquidity, margin, early exercise and assignment behavior. Educational illustration only—not financial advice.