Bear Call Spread

Psychology:

The call bear spread involves selling a call contract and then buying a call contract that is further out-of the-money. The time to use the bear call spread is when you want to take advantage of being bearish and want to use Theta (time erosion) to increase your odds. You will initiate the trade for a credit and that is the maximum amount you can make on the trade.

Risk / Reward:

Maximum Loss: Limited to what results when you take the difference of both strike prices and subtract the amount of the credit of buying the option.

Maximum Gain: Limited to the total premium received minus the commissions paid for the option contract.