What is a Bear Spread?

The bear market spread option strategy is adopted when the price is expected to fall, while limiting the maximum profit and the maximum loss.

Bear spread option

Right!

The bear market spread option strategy is adopted when the price is expected to fall, while limiting the maximum profit and the maximum loss.

The

Buy a stock call option that expires in November and knocks 120 at a premium of 1/2, while selling a stock call option that expires in November and knocks at a price of 110. The premium is that the strategy has an initial premium Benefit 5. At that time, the return was 0; at that time, the return was -10; when 110 <St115, a loss occurred).