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   Vertical Bear Spread
   















 

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Vertical Bear Spread

Profit/Loss Pattern of a Vertical Bear Spread at Expiration
Regardless of whether two puts or two calls are used to create this option spread, the option purchased has a higher strike than the option sold. The number of contracts purchased equals the number sold, and both options expire on the same date. Also called Perpendicular Spread, Money Spread.

Glossary * V