What does Bear Spread mean?

Bear Spread meaning in Finance Dictionary

a technique in trading options in which an alternative is bought at a workout price above compared to the underlying instrument and at the same time an alternative comes at a workout price below that of the underlying instrument, both with regards to exactly the same expiry thirty days. This applies to either call options or put options.

Bear Spread meaning in Law Dictionary

n OPTION method that tries to benefit from a BEAR MARKETPLACE; spreads could be organized as bearish CALL SPREADS (buy of a CALL OPTION and sale of a second call, where the brief call is struck closertothemoney) or bearish PUT SPREADS (purchase of a PUT CHOICE and purchase of a second place, where in actuality the long put is struck closertothemoney). Also called CASH SCATTER, PRICE SCATTER, VERTICAL SPREAD. See additionally BULL SPREAD.