Sentences with phrase «bear call spread»

This is a genuine high level summary of the market this week with emphasis on my RUT Bear Call Spread and a few words on the Ford (F) and GLD simulated Covered Calls I have an April expiration on RUT with the short contract at a strike of 1100.

For example, to write a simple bear call spread on the S&P 500, you would need to have sufficient margin (a «good - faith» performance bond) in your account to open the position.

I have a profit on most of these except for my UWM $ 42 put and the long portion of my NFLX bear call spread.

Bear Call Spread comes into play when the trader is expecting the market to go down gradually, but moderately.

This is a genuine high level summary of the market this week with emphasis on my RUT Bear Call Spread and a few words on the Ford (F) and GLD simulated Covered Calls

A bear call spread is a credit spread created by purchasing a higher strike call and selling a lower strike call with the same expiration dates.

Today I was able to close my Bear Call Spread against WYNN for a profit.

Tagged as: bear call spread, bull put spread, Butterfly Spread, Calendar Spread, Covered Call, CSSv2, Iron Condor, option guru, option spreads, stock options, think or swim, tos, Vertical Spread

Bear call spread and bear put spread are bearish vertical spreads constructed using calls and puts respectively.

Based on the above - mentioned example, we can explain the benefits and the drawbacks of entering into a bear call spread strategy.

The maximum profit obtained from a bear call spread is the net credit received, which is the difference between premium received and premium paid; and the maximum loss of this strategy is equal to the difference between spread and net credit.

The bear call spread consists of two calls, both with the same underlying asset and expiration date, but the strike price of the call options bought is less than the strike price of the same number of call options sold.

The payoffs from both bear call spread and a bear put spread are similar, but the situations in which both can be used differ.

Bear put spread is used for the net debit, whereas the bear call spread is used for a net credit, which means that an upfront payment is received at setting up a bear call spread.

The exact construction of a bear call spread involves buying an out - of - the - money call option and selling a higher strike price in - the - money call option of the same asset with same expiration date simultaneously.

Last week, I opened a few trades against SPX — one bear call spread, and two Iron Condors.