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What is a Call Credit Spread?
General Options
A Call Credit Spread, also known as a bear call spread, is an options strategy to speculate on neutral to slightly-decreasing stock price with neutral to slightly decreasing volatility. To form a Credit Spread, a trader would sell a call at one strike price, and simultaneously buy a separate call contract of a higher strike price
The trader receives a credit for the whole position, called a premium, though this credit is smaller than the credit associated with selling a Call alone. In exchange for this reduction, the max loss of a Call Credit Spread is limited to the width of the spread plus the credit received.