Moderately Bearish to Bearish
An investor often employs the bear put spread in moderately bearish market
environments, and wants to capitalize on a modest decrease in price of the
underlying stock. If the investor’s opinion is very bearish on a stock it will
generally prove more profitable to make a simple put purchase.
An investor often employs the bear put spread in moderately bearish market
environments, and wants to capitalize on a modest decrease in price of the
underlying stock. If the investor’s opinion is very bearish on a stock it will
generally prove more profitable to make a simple put purchase.