Options
Bearish Strategy Breakdown: Short Call Spread (Sell Premium)
Date: 2026-08-20 12:00:19
Another bearish strategy is the short call spread — and it feels different because you’re not buying a bearish option… you’re selling premium.
A short call spread means:
sell a call above the market
buy another call above that for protection
This is a bearish-to-neutral strategy. And you’re not necessarily saying the market has to fall hard — you’re saying:
“I think price can stay below this level.”
That’s a different bearish assumption.
Quick framework:
long put = needs a move down
long put spread = needs a move down toward a target
short call spread = just needs price to stay below the short strike
Same bearish idea. Different strategy, risk, reward, and probability.
#OptionsTrading #CallCreditSpread #Bearish #SellingPremium #OptionsEducation
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