BEAR SPREAD

  1. 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.

  2. Futures traders who aims to earn from the downgrade in commodity amounts while controlling possible damaging losses, uses this trading method.