A bear call spread is a very common trade for options traders. It has a directional bias as hinted in the name and also benefits from time decay, so it is popular with income traders.
Today, I’ll walk you through a bear call spread example on BABA stock.
I’ll show you how I found the trade setup and why it is structure this way, as well as how to set a stop loss.
A bear call spread is a very common trade for options traders. It has a directional bias as hinted in the name and also benefits from time decay, so it is popular with income traders.
Video Length: 00:03:30
The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
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