The bear call spread is a credit spread that profits when the stock stays below the short call strike. Alpha Copilot helps you find the best setups with real-time market data and probability analysis.
A bear call spread involves selling a call option at a lower strike and buying a call at a higher strike with the same expiration. You collect a net credit and profit if the stock stays below the short call strike at expiration.
Collect premium upfront. Max profit equals the credit received.
Max loss is limited to the spread width minus credit received.
Profits from neutral to bearish stock movement.
The short call strike should be above significant resistance levels. A strike with a delta of 0.20-0.30 provides good probability of profit while still collecting meaningful premium.
Wider spreads generate more credit but increase max loss. Common widths are $2-$5 for stocks and $5-$10 for indices. Aim for a credit that is at least 1/3 of the spread width for good risk-reward.
Bear call spreads work best in neutral to bearish markets, after a stock has rallied to resistance, or when IV is elevated. They are the bearish leg of an iron condor.
Alpha Copilot analyzes resistance levels, implied volatility, and probability of profit to find bear call spreads with optimal risk-reward ratios.
Try asking:
"Find a bear call spread on TSLA above resistance"
"Best call credit spread for income on SPY this month"
"Conservative bear call spread on QQQ with high PoP"
Explore bear call spread setups for specific stocks and market conditions.
The bullish counterpart — sell put spreads when you expect a stock to stay flat or rise.
Combine a bear call spread with a bull put spread for a neutral strategy.
A simpler bearish-to-neutral income strategy using stock you own.
Bullish income strategy — get paid to buy stocks at a discount.
Systematic income cycle combining cash-secured puts and covered calls.