A bear call spread involves selling a call option with a lower strike price and buying a call option with a higher strike price. This strategy profits when the underlying asset’s price decreases or remains stagnant. It is a popular strategy for traders who are bearish on a stock or market. The maximum potential loss is limited to the difference in strike prices minus the premium received, while the maximum profit is limited to the premium received. Investors should carefully consider the risks and benefits before implementing a bear call spread strategy.

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