ETF Bear Call Spread Options Strategy Explained

Exchange-traded funds (“ETFs”) provide investors with an easy way to reach nearly every corner of the stock market. Those that wish to implement targeted strategies may want to consider enhancing their ETF investing with equity/stock options. These tools make it easier to control risk and better generate profits during almost any market condition [see ETF Call And Put Options Explained]. In this article, we’ll take a look at the bear call spread strategy, which lets investors control risk and profit from moderately bearish market conditions. What Is a Bear Call Spread Strategy? Suppose that you believe that the S&P 500 SPDR will fall over the next month, but you’re not quite sure enough to short sell the stock. After all, short selling involves assuming the risk of unlimited losses if the index rises in value. One way to bet on a decline in SPY’s value with a very controlled risk-to-reward [...] Click here to read the original article on ETFdb.com. Related Posts: Daily ETF Roundup: FXY Pops As Dollar Tumbles, XLU Rallies Daily ETF Roundup: VXX Spikes On Fed Concerns, XLB Tumbles Daily ETF Roundup: Dow Snaps Tuesday Win Streak, IBB Sinks Daily ETF Roundup: GDXJ Pops Alongside Gold, XLE Rallies Using LEAPS As An Alternative to Buying ETFs