Learn how to profit in bear market with bear call spread trades on Coinbase and Marvell.

From Nasdaq

August 8, 2024 08:32 AM:

Summary:
Learn how to profit in a bear market with two bear call spread trades. These strategies involve selling and buying call options to navigate the downturn. Stocks like Coinbase and Marvell Technologies are discussed as potential candidates for these trades.

In a bear call spread, two options are traded within the same expiry month, with one call option being sold for a credit and another bought for protection. These trades are risk-defined and can be done in retirement accounts. Consider stocks with a bearish outlook and high implied volatility for best results.

Consider a bear call spread on Coinbase stock with a $240 – $250 spread for a credit of $75 per contract. Maximum loss is calculated at $925 with a return potential of 8.1%. Similar strategies can be applied to Marvell Technologies with a $70 – $75 spread for a credit of $45 per contract.

It’s important to manage risk in options trades. Have a plan in place to handle adverse movements. Remember options are risky and consult a financial advisor before making investment decisions. Always do your own due diligence before making trades in the stock market.

Read more at Nasdaq: Bear Market got you down? Try These 2 Bear Call Spread Trades on Thursday