Individual Institutional Fintech & Developer
Sign in
Open account
Individuals Institutional

Call toll-free 800.328.1267

Login

Market Insights

Bringing you the trading news around the world.

Stocks

Options

Futures

Bearish Option Strategies
Bearish Option Strategy: Call Credit Spread
David Russell
December 30, 2023


Traders sell a call option near the money and buy another at a higher strike. This strategy generates a credit, while limiting potential losses if prices increase. Learn more

Tags:

About the author

David Russell
David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.

Related stories

Bearish Option Strategy: Put Spread

Bearish Option Strategy: Put Spread

by David Russell | Dec 30, 2023

Traders buy a put option near the money and sell another at a lower strike. This strategy can leverage a price drop with limited capital at risk. Learn more

Bearish Option Strategy: Long Puts

Bearish Option Strategy: Long Puts

by David Russell | Dec 30, 2023

Traders buy a single put option on a stock or ETF. This strategy can benefit from a price drop while risking more capital than a spread. Learn more