[Verse 1]
When you think the market's rising but don't want too much risk
Bull call spreads are the answer, here's the simple trick
Buy a call at lower strike, sell one higher up
Limited loss, limited gain, but profits you can cup
[Chorus]
Bull and bear spreads, keeping risk in check
Buy the lower, sell the higher, what do you expect?
Bull spreads rise with markets, bear spreads fall down low
Limited risk and reward, that's the way they go
Spread the wings but cap the flight
Bull and bear spreads done right
[Verse 2]
Bear put spreads work backwards when you think prices drop
Buy a put at higher strike, sell the lower stop
Pay less premium overall, but gains are limited too
Directional but safer play when bearish views come through
[Chorus]
Bull and bear spreads, keeping risk in check
Buy the lower, sell the higher, what do you expect?
Bull spreads rise with markets, bear spreads fall down low
Limited risk and reward, that's the way they go
Spread the wings but cap the flight
Bull and bear spreads done right
[Bridge]
Maximum loss is net premium paid
Maximum gain when strikes are wide
Time decay helps when you've sold the high
But hurts the long position by your side
[Verse 3]
Bull put spreads and bear calls too
Credit spreads that pay you first
Collect premium up front but watch for assignment worst
Four ways to play direction with your risk defined
Bullish or bearish outlook with peace of mind
[Chorus]
Bull and bear spreads, keeping risk in check
Buy the lower, sell the higher, what do you expect?
Bull spreads rise with markets, bear spreads fall down low
Limited risk and reward, that's the way they go
Spread the wings but cap the flight
Bull and bear spreads done right
[Outro]
When direction's what you're betting but you need control
Spreads will limit both your risk and profit goal
Bull and bear spreads, the trader's middle ground
Limited but steady gains are what you'll find