BEAR SPREAD
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An option method looking for the highest earning when the amount of the underlying security decreases. The method includes the simultaneous buying and selling of options; calls or puts can be used. A smaller strike amount is sold and a greater strike amount is bought. The options should have the similar expiration date.
- Futures traders who aims to earn from the downgrade in commodity amounts while controlling possible damaging losses, uses this trading method.
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Pass-Through Rate
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