Bear call credit spreads are a type of options trading strategy that involves selling a call option on a stock with a high strike price and buying a call option on the same stock with a lower strike price. The goal of this strategy is to make a profit when the underlying stock's price decreases, while limiting the potential loss to the difference in the strike prices of the two call options, plus the initial credit received from the trade. Overall, bear call credit spreads can be a useful strategy for investors who want to take a bearish position on a stock, but who want to limit their potential loss in the event that the stock does not perform as expected.
Max Profit: Maximum profit is limited to the difference between the short call and long call prices.
Max Loss: Max loss is limited to the difference in strike values minus the credit.