The Stock Market Is Not Okay – These Bear Call Spreads Look Good

With the market coming into a seasonally weak time of year and volatility on the rise, Bear Call Spreads could be an interesting trade to consider.

A bear call spread is a type of vertical spread, meaning that two options within the same expiry month are being traded.

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One call option is being sold, which generates a credit for the trader. Another call option is bought to provide protection against an adverse move.

The sold call is always closer to the stock price than the bought call.

As the name suggests, this trade does best when the stock declines after the trade is open.

However, there can be many cases where this trade can make a profit if the stock stays flat and even if it rises slightly.

Bear call spreads are risk defined trades, there are no naked options here, so they can be traded in retirem

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/options/articles/stock-market-not-okay-bear-110002938.html)