Bear call spread screener

Supported filters

RSI (14d)

Fourteen-day RSI. A minimum of 66, which the Bear Call Spreads on Overbought Stocks preset uses, finds stocks that have run far in a short time.

Bollinger position

Where the stock sits inside its Bollinger Bands, from 0 at the lower band to 1 at the upper. A minimum of 0.9 finds stocks pressing the top of their recent range, a second read on stretched alongside RSI.

% from 52w high (%)

Distance below the 52-week high. A range of -10% to -2% finds stocks rallying into a prior high that may act as resistance, rather than ones already breaking out to new highs.

% from 50-day SMA (%)

Percent from the 50-day moving average. A large positive reading is another measure of a stretched rally; a maximum of 0 instead keeps call spreads over stocks already below trend.

Return at +1 ATR move (%)

The spread's return at expiration if the stock rises one expected move. A floor of 0% keeps only spreads that survive an ordinary rally, which usually means a smaller credit.

Breakeven distance (ATRs) (x)

Distance from the stock up to the breakeven, in daily ATRs, with no scaling for time. Overbought stocks often have elevated ATRs, so this adjusts the cushion automatically.

Probability of profit (%)

Model-estimated probability the spread makes at least one cent, meaning the stock closes below the breakeven. The overbought preset uses a 65% floor.

Return on risk (%)

Credit divided by max loss. Call skew often makes out-of-the-money calls cheaper than puts the same distance away, so expect somewhat lower returns than on put spreads at the same probability.

Max loss ($)

Width minus credit, per spread. A dollar cap keeps wide spreads on high-priced momentum stocks out of the list.

Delta (anchor leg)

Absolute delta of the short call. The screener builds spreads with the short call between roughly 0.10 and 0.45 delta; 0.15 to 0.30 is the usual band.

Ex-dividend date

Exclude ex-dividend dates before expiration. An in-the-money short call is likely to be exercised the day before the ex-date, leaving you short shares and owing the dividend.

Earnings

Exclude earnings before expiration. A strong report can push a stretched stock further, straight through both strikes.

Days to expiration (days)

Days to expiration. The overbought preset uses 14 to 50 days: long enough for a stall to show up, short enough that a new leg higher has limited time.

Total option volume

Total option volume across the chain. Momentum names often have active chains, but the long call a few strikes out can still be thin.

Bid-ask spread ($) ($)

Maximum bid-ask spread on the wider leg in dollars. Out-of-the-money calls on fast stocks can have wide markets relative to their price.

Screening walkthrough

1. 1. Start with the overbought preset

   Bear Call Spreads on Overbought Stocks screens call credit spreads above stocks with RSI at or above 66, at least 65% modeled odds of profit, 14 to 50 days to expiration, and liquid chains, sorted by expected value. It is deliberately loose on return and size so you can add your own limits.

2. 2. Confirm the stretch with a second measure

   RSI alone flags strong trends as overbought for weeks. Add Bollinger position of 0.9 or more, or a percent from the 50-day average well above zero, to focus on stocks that are extended by more than one measure. If you would rather fade a rally into an old high, use percent from 52-week high between -10% and -2% instead.

3. 3. Make the spread survive an ordinary rally

   Stretched stocks can keep going. Add return at a +1 ATR move with a floor of 0%, which removes spreads that would lose if the stock rose one more expected move by expiration. Then add breakeven distance of two or more daily ATRs as a second check.

4. 4. Clear dividends and earnings

   Turn on the ex-dividend exclusion. Early exercise on short calls clusters before ex-dates, and it can happen even when the long call would protect you at expiration. Exclude earnings as well unless the report is the reason you expect the stall.

5. 5. Cap the risk and check the fill

   Set max loss to your per-spread limit and a bid-ask spread cap of $0.50, then open a result and compare the mid credit with conservative pricing. On narrow call spreads the difference is a large share of the credit, as the example below shows.

Limitations and risks

• If you are assigned early on the short call, you become short 100 shares and owe any dividend paid to the holder. The long call still caps the loss, but you have to exercise or sell it to close the position.
• Overbought is a description of recent price action, not a forecast. Strong trends can register RSI above 70 for weeks while the spread moves against you.
• If the stock closes between the strikes at expiration, the short call can be assigned while the long call expires worthless. Close or roll spreads near the money on expiration day.
• Probability of profit and expected value are model estimates derived from option prices. They do not know about RSI, trends, or scheduled events unless you filter for them.
• Quotes are refreshed intraday and are a snapshot, not a live feed. Conservative pricing is the more realistic figure on two-leg call spreads.
• The scanner returns candidates only. It does not know your buying power or place orders.

Frequently asked questions

Is a bear call spread bearish?

Mildly. It profits if the stock stays below the short strike, so it wins if the stock falls, stays flat, or rises a little. It is a bet that a rally stalls, not that the stock drops. For a bet on a real decline, a bear put spread or long put pays more when you are right.

Why does the dividend filter matter more for call spreads?

Because the holder of an in-the-money call can exercise it the day before the ex-date to collect the dividend, and often will when the call's remaining time value is below the dividend. Short puts do not carry that incentive.

Which technical filter should I pair with a bear call spread?

RSI at or above 66 to 70 is the standard overbought screen and is what the preset uses. Bollinger position near 1 and a large percent above the 50-day average confirm the stretch. Percent from 52-week high near zero finds rallies running into a prior high.

Why do bear call spreads often pay less than bull put spreads?

Most stocks have volatility skew: out-of-the-money puts carry higher implied volatility than calls the same distance out. So a call spread with the same probability usually collects a smaller credit. Compare bear call spreads with each other rather than with put spreads.

How is this page different from the credit spread scanner?

The credit spread scanner covers bull put and bear call spreads side by side. This page is only about the call side: finding stretched stocks, testing the trade against a further rally, and handling ex-dividend assignment.

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