Bear Call Spread – Controlled Bearish with Peace of Mind

A Bear Call Spread is a mildly bearish strategy where a Call option is sold and a higher strike Call is bought to cap the risk. It is a refined version of a short call with limited profit and limited loss. When to use: Use this strategy when the market is sideways to mildly bearish and you expect the price to stay below a resistance level. Historic Example: In April 2023,

was expected to remain below the 2400 mark for that expiry. • Sell 2400 Call @ ₹25 • Buy 2460 Call @ ₹10 Net premium received = ₹15 Profit & Risk: Breakeven = 2400 + 15 = ₹2415 Max Profit = ₹15 Max Loss = (2460 − 2400) − 15 = ₹45 (limited) Key takeaway: Bear Call Spread suits calm, sideways-to-bearish markets where income is preferred with clearly defined risk. 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered advisor before making any investment decisions.