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Barchart
Barchart
Rick Orford

Profiting from Market Highs: 3 High-Potential Bear Call Trades

US markets are trading around their all-time highs, and with the elections just around the corner, this begs the question: How can investors take advantage of the near-term volatility?

One way is to sell a bear call spread, an options trading strategy in which the investor sells a call option and then buys another with the same expiration date and on the same underlying security- however, with a higher strike price. The combination results in a net credit, which is why the strategy is also sometimes called the call credit spread.

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