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Bear Spreads
If you are negative about a particular stock, bear spreads are a great low risk, low reward options strategy.
The simplest way to create a bear spread is using put options at or near the current trading price of the stock. See bear put spread.
Bear spreads can also be constructed using call options. See bear call spread.
Credit or Debit
Bear spreads can be entered on a credit or debit. When entered on a credit, it is a bear credit spread. When entered on a debit, it is a bear debit spread.
