Glossary of Option Terms: Bear Spread

Bear Spread

Definition: A strategy seeking greater earnings when the price of the underlying security declines. Either puts or calls can be used. A higher strike price is purchased and a lower strike price is sold. The options have the same expiration date.

Related Articles:

Related Terms:

Back to Glossary

Sign Up for The Smart Profits e-Report!
Sphere: Related Content

Comments

Comments are closed.