Course Content
1. Generating Income from a Falling Market
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Lesson 1.1: Introduction – The Smart Bear’s Income
Lesson 1.2: Construction – The SPY Example
Lesson 1.3: The ‘Safety Net’ (Vertical Spread)
2. The Math of the Engine (Risk, Reward, and ROI)
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Lesson 2.1: Max Profit & Max Risk
Lesson 2.2: The Breakeven & ‘Upside Leeway’
Lesson 2.3: Return on Investment (ROI)
3. The Greeks of the Income Engine
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Lesson 3.1: Net Theta – Your Daily Paycheck
Lesson 3.2: Net Delta – The ‘Ceiling’ Bias
Lesson 3.3: Net Vega – The ‘Fear’ Factor
4. Professional Management & The 50% Rule
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Lesson 4.1: The ‘50% Rule’ – Lock in the Win
Lesson 4.2: Handling the Three Expiration Scenarios
Lesson 4.3: Assignment Risk & The ‘Pin’
Bear Call Spread Quiz
5. Course Graduation & Your Income Roadmap
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Lesson 5.1: The ‘House Edge’ Summary
Lesson 5.2: Your Next Steps to Consistency
The Bear Call Income Engine

Theta is the reason we use credit spreads. It measures how much the value of an option erodes each day.

  • The Short Leg ($700): Theta of -0.132 Decays faster because it is closer to the money.

  • The Long Leg ($704): Theta of -0.109 Decays slower.

  • The Result: You keep the difference. In our SPY example, the Net Theta is +0.023 (0.132-0.109). 

The Bottom Line: You are earning approximately $2.30 per day in “time decay” just for holding the position. Even if the stock market doesn’t move at all, you are getting paid.

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