Bear Call Spread Option Strategy

Bear Call Spread is one of such options strategies that is used by traders when they have a moderately bearish outlook of the market or stock. In this strategy, the investor goes long on the OTM call option and short on the ITM call option. It is to be ensured that both the options must have the same expiry date and are bought/sold in equal quantities. It is used when markets have rallied and call premiums have gone high.