An option strategy that delivers its maximum profit when the underlying stock declines and has its maximum risk if the stock rises in price. The strategy can be implemented with either puts or calls. In either case, an option with a higher striking price is purchased and one with a lower striking price is sold, both options generally having the same expiration date. See also Bull Spread.
Tags Bear Spread
Related Articles
SEC announced insider trading charges against three software engineers employed at Twilio
March 28, 2022
Federal Court Orders Virginia Resident to Pay More Than $5 Million for Futures and Options Fraud
May 14, 2021
Cboe Options Exchange to Extend Global Trading Hours for VIX and SPX Options to Nearly 24 Hours-a-Day
April 12, 2021