Vertical Bearish Call Spread

• Purchase higher strike and sell lower strike

  • Example:
    • current stock = $40
    • $35 call selling for $7
    • $45 call selling for $2

Stock Price at Expiration

25

30

35

40

45

50

55

60

Sell $35 call

7

7

7

2

-3

-8

-13

-18

Buy $45 call

-2

-2

-2

-2

-2

3

8

13

5

5

5

0

-5

-5

-5

-5

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