💸 Strategies to Profit in a Bear Market

Selling High-Probability Credit Spreads When Volatility Spikes and Letting the Market Pay You

Many traders and investors hate volatility. I welcome it.

When the market sells off, volatility spikes—and with it, option premiums surge. This is where most traders get shaken out. But if you understand how to sell high-IV credit spreads, this environment becomes one of the best times to collect income while defining your risk.

In this article, I’m going to walk you through exactly how I use volatility to my advantage, the logic behind the credit spreads I choose, and how I build both bullish and bearish setups based on price action. I’ll also show you how I stayed consistently profitable —even as the market was breaking down.

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📊 Why Volatility Creates Opportunity

When markets fall and fear rises, implied volatility (IV) spikes. That causes option prices to inflate—especially out-of-the-money options.

This is bad for buyers chasing direction.
It’s great for sellers who know how to price risk.

When I sell credit spreads, I don’t need to predict big moves. I just need the stock to stay below a resistance level (bear call) or above support (bull put). That’s it.

And in a high-IV environment, I get paid more to take that bet.

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🧠 How Credit Spreads Work

A credit spread is a defined-risk options strategy where you sell one option and buy another—same expiration, different strike. This lets you:

• Collect a premium up front

• Cap your risk

• Use technical levels (support/resistance) to define your edge

• Profit as long as the stock stays within a range

I use two main types of credit spreads:

📉 Bear Call Spread (When I’m Bearish)

• Sell a call near resistance when a stock is in a downtrend

• Buy a higher-strike call to cap risk

• Profit if price stays below the short call

Perfect when a weak stock bounces off resistance during a broader sell-off.

📈 Bull Put Spread (When I’m Bullish)

• Sell a put above key support on a stock in an uptrend

• Buy a lower-strike put to define risk

• Profit if price stays above the short put

Great for stocks showing relative strength, even during broad market weakness.

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🎯 Why I Trade These in Bearish Conditions

Credit spreads are one of the few strategies that become more favorable as markets get messy:

✅ High IV = High Premiums
You get paid more when IV spikes. That improves your risk-to-reward and allows for wider spreads with good returns.

✅ Defined Risk
You know the worst-case scenario up front. That’s critical in uncertain markets.

✅ Time Decay Works in Your Favor
Every day that passes with price in your expected range is money earned.

✅ No Need to Time Bottoms or Tops
You're not buying dips or shorting tops. You're simply placing the odds in your favor using levels that matter.

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🧪 What I Look For in a Setup

When I scan for trades, I want:

• High IV Rank (preferably 50+ for better premiums)

• Clear technical levels (support or resistance to lean against)

• Price action confirmation (rejections or holds, not just hope)

• Wide enough spread for meaningful premium

• Liquidity (tight bid/ask spreads, reasonable open interest)

I’m not guessing. I’m filtering.

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✅ Real Trades That I Recently Put Out

Here are the links to the trades to which I applied this approach:

• BAC Probability 68.05% – Bear Call Spread 43/46 IV Rank: 72

• BJ Probability 56.83% – Bull Put Spread 105P / 110P IV Rank: 33

• CROX Probability 70.33% – Bear Call Spread 105C / 120C IV Rank: 65

• DHR Probability 68.63% – Bear Call Spread 210C / 225C IV Rank: 93

• QCOM Probability 65.81% – Bear Call Spread 160C / 170C

These weren’t long shots. They were high-probability trades that aligned with price action and volatility conditions. And I posted every one of them ahead of time for paid subscribers—with entry, strike prices, and exits.

✅ See the Take Profit Reacp Links:

Take Profit April 3, 2025

Take Profit April 4, 2025

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🔐 Want These Trades in Real Time?

I publish my trade setups every day They include:

• Strike prices

• Entry rationale

• Price targets

• Take-profit alerts

If you want to learn by following real trades—not theory—consider becoming a paid subscriber. The trades pay for the subscription.

👀 Upgrade to Paid – Start Getting Daily Trade Alerts

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💬 Let’s Talk Strategy

Are you using volatility to your advantage or sitting on the sidelines?
Have you tried selling credit spreads in this kind of market?

Drop a comment—I’m always open to hearing how others are navigating this environment.

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*Disclaimer: The examples in The Options Oracle are my opinion, not financial advice.

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