Value-Trades

Bear Call Spread Strategy: Real Trade Example


Real Example (July 2025)

A bear call spread is a defined-risk, neutral-to-bearish strategy that involves selling a lower strike call and buying a higher strike call with the same expiration.
  • Stock: ABC Corp
  • Outlook: Neutral to bearish
  • Setup: Sell 1 ABC $80 Call @ $3.00; Buy 1 ABC $85 Call @ $1.00
  • Net Credit: $2.00 ($200 per contract)
  • Max Profit: $200
  • Max Loss: $300
  • Breakeven: $82.00

Outcomes

Price at Expiration $80 Call Value $85 Call Value Net Value of Spread Profit/Loss
< $80 (e.g., $75) $0 $0 $0 +$200
$83 $3.00 $0 $3.00 -$100
> $85 (e.g., $90) $10.00 $5.00 $5.00 -$300

Compare With Bear Put Spread Strategy →

Learn Bear Put Spread

Advertisement


Advertisement

Advertisement

Sign Up free to view live trades and discussion forum to make more informed financial decisions. No credit card is required for sign up!
View Daily Trades
Join Discussion