When it comes to options strategies, the Bear Spread is a good choice for investors who are mildly bearish and want to minimize losses while still making a profit. The goal is to make money when the price of the underlying security declines.To do this, simultaneous purchase and sale of either puts or calls for the same underlying contract with the same expiration date but at different strike prices. For example, if you were bearish on XYZ stock, you might buy a Put option with a strike price of $80 and sell a Put option with a strike price of $85.The beauty of the bear spread is that it limits your downside risk while still providing the opportunity to make a profit if the price of the underlying security does decline. So, if you're feeling bearish on a particular stock or market, the bear spread might be the right options strategy for you.
