This is an option strategy in which you expect the underlying stock to go lower or remain sideways. In this stock option strategy you buy one option at a higher strike price and you sell another stock option at a lower strike price. Keep in mind that you are buying and selling two premiums of the same underlying stock.

If the stock goes down in price then you stand to make a profit. In the bear call stock option strategy you use the money from selling an option and using it to buy another option.

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