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Bear call spread calculator
collect premium against a ceiling

A bear call spread sells a call and buys a higher one as protection, collecting a credit. You keep it as long as the underlying stays below your short strike. It is the standard way to express "I don't think this goes any higher" without needing it to fall.

Outlook: Bearish / neutral

Max profit

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best case at expiry

Max loss

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worst case at expiry

Breakeven

—

where the trade turns even

Net debit / credit

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to open the position

Your bear call spread

Per-share premiums. One contract = 100 shares.

Underlying price

Short call @ strike

Premium collected

Long call @ strike

Premium paid

Contracts

100 shares per contract

Profit at expiry Loss at expiry Breakeven Strikes & spot

How a bear call spread pays

Net credit = premium collected − premium paid Max profit = net credit × 100 × contracts Max loss = (strike width − net credit) × 100 × contracts Breakeven = short call strike + net credit

Sideways and down both pay. Only a rise through your short strike hurts, which is two of three outcomes in your favour.
The long call is not optional. Without it this is a naked short call with unlimited risk. The protection is what makes the position defined-risk.
Assignment risk is real on dividends. Short calls in the money are most often assigned just before an ex-dividend date.

Worth naming. Selling calls above a stock in a strong uptrend is one of the most reliably painful trades available. The credit is small and fixed; the move against you is not. Respect the short strike as a level you actually believe holds.

What this does not model

Every figure here is the payoff at expiry. Before then your position is marked at market prices that still carry time value, so a trade can show a loss while sitting exactly where you wanted it — falling implied volatility alone will do that.

Short legs carry assignment risk. American-style options can be exercised at any time, most commonly on in-the-money calls just before an ex-dividend date. The diagram assumes you hold every leg to expiry.

For the full version — Greeks, marks and what-if scenarios — that is what the GreeksView desk does, in your browser, against option-chain figures from our licensed market-data feed.

Frequently asked questions

What is the maximum loss on a bear call spread?

The strike width minus the net credit, times 100 per contract. Selling the 100 call for $4.00 and buying the 110 for $1.50 gives a $2.50 credit on a $10 spread, so the maximum loss is $750 — at or above 110 at expiry.

What is the breakeven on a bear call spread?

The short call's strike plus the net credit: 100 + 2.50 = $102.50. Below that at expiry the position profits; above it the credit stops covering the loss.

Why not just sell a naked call?

Because a naked short call has unlimited risk — there is no upper bound on a share price. The long call caps the loss at the strike width and dramatically reduces the margin your broker requires. The premium you give up for it is the cheapest insurance in options.

What happens if my short call is assigned early?

You end up short 100 shares per contract. Your long call still caps the risk, but you are now carrying a short stock position with its own margin and borrow implications, and you owe any dividend. Closing the spread before an ex-dividend date is the usual defence.

Are commissions included in these numbers?

No — every figure is gross. On multi-leg positions this matters more than people expect: four legs to open and four to close is eight commissions against what may be a couple of hundred dollars of credit. Check your broker's per-contract rate against the max profit shown here before deciding a trade is worth putting on.

See it on a real chain

The numbers above are the ones you typed. Here is a bear call spread built from SPY's own chain at the last close — real strikes, real premiums, with its breakevens and probability of profit.

SPY bear call spread, priced from the close →

Run this on the GreeksView desk against a real option chain

GreeksView builds positions from real option chains, with Greeks labelled by source and delay, gamma exposure and what-if scenarios — in your browser, on figures from our licensed market-data feed.

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Educational tool only — not investment advice, and not a recommendation to enter any position. Options involve substantial risk and are not suitable for every investor. Figures are theoretical, exclude commissions and taxes, and assume the position is held to expiry. GreeksView is not a broker and does not hold funds.