Option Investor
Glossary

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Bearish Spread

A bearish spread is a strategy used in the options market to take advantage of a fall in the price of the underlying security. The investor executing a bearish spread could buy or sell multiple strikes of either calls or puts on the same security. There are several ways to trade a bear spread. One example would be buying one put at one strike and selling another put at a lower strike.