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When markets get choppy, a lot of traders panic. But for me, volatility is just another opportunity — especially when it comes to bear call spreads.
They’ve become one of my favorite tools for managing risk and squeezing out consistent profits, even when the markets are acting like they’ve had too much caffeine.
Let’s break down why these spreads work so well when things get wild.
One of the biggest reasons I lean on bear call spreads during volatile periods is the probability factor. When volatility spikes, options premiums inflate, and that’s where the magic happens.
You can collect more premium while setting your strikes further from the current price, which gives you more room for error.
For example, I recently set up a bear call spread with strikes at 6,010 and 6,025 on the SPX. The market was flirting with all-time highs, but with all the tariff noise and end-of-month jitters, I was betting it wouldn’t break out.
Sure enough, the market started to retreat, and that spread closed out for a nice profit.
The beauty of a bear call spread is that your risk is clearly defined. You know exactly what you’re putting on the line, which helps keep emotions in check — something that’s critical when the market’s swinging 50 to 80 points in a day like we’ve seen recently.
I had another setup where I combined a bear call spread with a broken wing butterfly at the 6,000 level. The idea was simple: If the market stayed below my call strikes, I’d pocket the premium.
But if things got really nasty and dropped down to my butterfly pin price, I’d turn a small credit into a bigger payday. In the end, both trades worked out, and I walked away with multiple winners.
Chris Pulver
Chris Pulver Trading
Editor’s Note: How to Set Up a Bear Call Spread
If you’ve traded with me before, you know I like to keep things simple and efficient — especially when it comes to strategies like the bear call spread. It’s one of my go-to plays when I think the market’s topping out or stalling. Here’s exactly how I set one up.
Step 1: Identify Resistance Levels: First things first, you need to find a solid resistance level. I’m looking for a price point where the market’s struggled to break through — maybe it’s failed a few times, or there’s heavy overhead supply. For example, if the SPX is pushing up near 6,000 but keeps getting slapped back down, that’s my cue.
Step 2: Choose Your Strike Prices: Now, you’re going to sell a call option at or just above that resistance level. Let’s say I sell the 6,010 call because I don’t think the SPX will climb above that. Next, I buy a call option at a higher strike price — say 6,025. This limits my risk if the market surprises me and breaks out. The distance between these strikes defines the spread.
Step 3: Collect the Premium: Since you’re selling the closer-to-the-money call and buying the further-out call, you’ll collect a net credit. That’s your max profit — and the best part? You get to keep that premium as long as the market stays below your sold call at expiration.
Step 4: Manage Your Risk: The key here is defined risk. The difference between the strikes minus the premium you collected is your max loss. So if I collected 45 cents on a 15-point spread, my risk is capped at $10 per contract.
I always keep an eye on my trades, but the beauty of bear call spreads is they don’t need constant babysitting. If the market behaves and stays below my sold strike, I walk away with a nice profit.
And that’s it. Simple, effective, and one of the best ways to capitalize on choppy or bearish markets without exposing yourself to unlimited risk.
Volatility Is Your Friend
Most traders shy away from volatility, but I see it as an edge. The key is to size your trades appropriately and stay disciplined. Bear call spreads give me the flexibility to profit whether the market stalls, dips slightly or even chops sideways.
Take last week’s action as an example.
The S&P 500 and the Nasdaq 100 (QQQ) both flirted with highs but couldn’t hold up under the pressure of renewed tariff talks. Instead of trying to guess the next move, I positioned my bear call spreads at key resistance levels and let the market do its thing.
The result? A solid week with a string of profitable trades.
In volatile markets, you don’t need to swing for the fences. Bear call spreads let you play it smart, manage risk, and still come out ahead — and that’s why they’re my go-to strategy when things get wild.
I’ll see you in the markets.
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. 1 of the Few Setups That Really Targets Daily Cash
Cash is king… not just in business but also in trading.
While it’s great to have long-term setups that pay out after a couple of weeks, or months…
You should also have a setup that targets daily cash from the market in your arsenal.
It’s one reason why my No. 1 setup for a shot at daily cash might just be my favorite trade to take.
The best part, unlike the typical day trader staring at charts all day… your entire trade, from entry to exit, is done in the first 90 minutes of the day.
And as long as nothing crazy happens, you should see $100 or more (on a $1k stake) hit your account latest by 11 a.m. ET.
As crazy as it sounds, it’s been my routine for quite some time now and we’ve nailed 438 wins using this setup.
Now I can’t make absolute guarantees here…
But if you’d like to see what this powerful setup is, as well as how you can get started with your first trade as soon as tomorrow…
We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading. Past performance is not indicative of future results. Stated results are from live published alerts between 8/26/24 and 9/29/25. The win rate has been 89% on the options with an average return of 14.17% over a one-day hold time.
