 Welcome to the course on bear calls the bear call is a bearish spread as the name suggests and we are going to use call options To put the bear bear call trade on the candidate. I'm choosing for my bear call is Amazon so Amazon is right here the tickers AMZN and What we have is Amazon reported results last week and it was actually very good results for Amazon So Amazon blew through gapped up, but since then it's not been able to sustain the higher levels there So, you know right after the initial euphoria, I guess the you know Amazon has started to come down and so right now it's about at about 225 it went up to a high of about 233 and That's a and so it's come down to 223 So my sense is that this is It's going to be tough to break this one because it jumped up quite a bit You can see that it jumped up from 195 all the way to to 220 so that was a huge jump for Amazon and if you look at the past three or four earnings Results the jump has never been quite so strong And in fact this was a down move and this was a down move and here again We have here. We have a slight up move maybe about ten fifteen dollars, but that's about it A bear call is a good strategy for Amazon right now. Now. What exactly is a bear call? So a bear call is going to use two spreads. It's going to use a long call and it's going to use a short call So which means which tells you right away that the dominant position is going to be the short call and not the long call So we have so the short call means we are going to sell a call option And that's going to be the dominant option then once we sell the short call We are going to buy a call at a higher strike price to limit the risks of the short call