August 17, 2026
11 °C London, UK

Serving Intelligent Investors

Bear Spread

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.

Previous Article

Bank run (bank panic)

Next Article

Bull Spread

You might be interested in …

Outlook for trading volume derivatives industry

FIA survey shows strong outlook for cleared derivatives markets

FIA conducted a survey at the beginning of 2021 to assess the outlook for the global cleared derivatives industry. The survey gathered feedback from people working at banks, brokers, exchanges, technology vendors and other firms that support the trading and clearing of derivatives such as futures and options.

F

Factor sensitivity The impact on a portfolio of assets of movements in the underlying risk parameter of an individual asset. Factor portfolio A well-diversified portfolio constructed to have a beta of 1.0 on one factor […]