Joules Garcia / Investopedia A bull call spread is a type of options trading strategy that involves two call options. A bull call strategy is executed by purchasing call options at a specific ...

If both options are call options, the spread is known as a call spread. If both options are puts, then it is called a put spread. If the ratios of the 2 options differ, it is a ratio spread.

One way to use options to profit from declining stock prices is via a bear call spread. A bear call spread is a type of vertical spread, meaning that two options within the same expiry month are ...

creating a credit spread that profits if the stock stays above the short put strike. The bear call spread works similarly but in the reverse. You sell a lower-strike call and buy a higher-strike ...

Previously in this column, we compared covered call to a bull call spread. We later discussed when a covered call can be considered as an income strategy. This week, we look at why setting up a ...