Payoff profiles for bear put spread and bear call spread are different right? Max profit for the bear call spread is the difference between premiums (initial credit) And max profit for bear put spread is more complex, related to the difference in two strike prices. E. g when stock price goes to 0, the difference is clear. Am I right? (some website says the payoff profiles are the same. That’s incorrect, right?)
is there a bearish call spread?
OP, you are right except that the bear put spread’s MP excludes the difference in premiums you paid to buy into the spread. So its difference of the strike minus the difference of premiums. Ding, the bear call is created when you short a call hoping to earn the premium. The spread is.created when you also buy a call with a higher strike for protection. You caputre the difference in premium only since this is a.short strategy.