What is BEAR SPREAD?

An OPTION strategy that attempts to take advantage of a BEAR MARKET; spreads can be structured as bearish CALL SPREADS (purchase of a CALL OPTION and sale of a second call, where the short call is struck closertothemoney) or bearish PUT SPREADS (purchase of a PUT OPTION and sale of a second put, where the long put is struck closertothemoney). Also known as MONEY SPREAD, PRICE SPREAD, VERTICAL SPREAD. See also BULL SPREAD.

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