Compare and Contrast: Bear Call vs. Bear Put

Video description: Bear Call Credit Spread also known as the Short Call Spread Theta: Theta works to the advantage of the bear call credit spread. As time passes, the value of the options decreases, which means that the seller of the options can buy them back for less than they originally sold them for. This can lead to a profit even if the price of the underlying asset does not move much. Implied Volatility: Normally Bear call credit spreads benefit from a decrease in implied volatility - BUT - this will be totally dependent on what strikes are used for the spread - so be sure to model your specific trade. Bear Put Debit Spread also known as the Long Put Spread Theta: Theta works against the bear put debit spread. As time passes, the value of the long option decreases, which means that the buyer of the option will lose money. This is because the buyer of the option is paying for time value, which is the value of the option that comes from the fact that the option has not yet expired. Implied Volatility: Bear put debit spreads normally benefit from an increase in implied volatility - but again, they can act differently depending on where they are put on in relationship to the current market. It should be noted that most traders would not consider putting these positions on at the same price points - they would usually position them up or down the price scale based on how Bearish they might want to be on the trade - but for comparison purposes, I wanted to show both at the same strikes. #steveganz #options #SPX #incometrading #RUT #butterflytrade #butterfly #ironcondor #condor #trading #optionstrading #stockoptions #indexoptions #SPXoptions #tradingstrategy #optionseducation #technicalanalysis #marketanalysis #riskmanagement #tradingpsychology #volatilitytrading #ironcondor #SJGtrades #butterflyspread #calendarspread #creditspread #debitspread #optionsexpiration #optiongreeks #optionsincome #Johnlocke #dansheridan #Sheridanmentoring #optionstrat