Bear call spread strategy for NKE, profits if stock price decreases

From Barchart: 2025-03-18 07:00:02

In a bear call spread, an investor sells a call option with a lower strike price and buys a call option with a higher strike price. This strategy profits when the underlying asset’s price decreases. The maximum potential loss is limited to the difference between the two strike prices, while the maximum potential profit is the net credit received. Bear call spreads are considered a neutral to bearish strategy and are commonly used in options trading to generate income. It is important for investors to carefully consider market conditions and risk tolerance before implementing this strategy.



Read more at Barchart: Bear Call Spread Ideas for NKE Earnings