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Bear Call Spread

Aim:

Income

Cost:

Net-Credit

Trader’s Outlook:

Bearish

Description:

This is a vertical spread consisting of a long position in an OTM call option with a strike price K1, and a short position in another OTM call option with a lower strike price K2 . This is a net credit trade. The trader’s outlook is bearish. This is an income strategy.

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