Bear Call Spread (Credit)
In plain English
Get paid now for betting a price will NOT rise much. You sell a call and buy a higher one as a safety net. You keep the cash if the price stays down; the loss is capped if it rises.
How it's built
Sell a call and buy a higher call — collect a credit, profit if the price stays down.
Illustrative payoff at expiry on a NIFTY-like underlying (spot 24,000, 7d, 13% IV). The shape is the point — open it in the Strategy Lab to tune spot, time and volatility live.
Max profit₹3,994
Max loss₹5,756
Net premiumCr ₹3,994
Breakevens24,111
When to use it
Neutral-to-bearish, want positive theta with defined risk.
Max profit
The net credit received.
Max loss
Limited to (spread width − net credit).
Common mistakes
- Selling too close to spot in a strong uptrend.