Bear Spread Maximize Downside Gains with Proven Options Strategy

1599 reads · Last updated: December 18, 2025

A Bear Spread is an options trading strategy designed to profit from a decline in the price of the underlying asset. This strategy is implemented by simultaneously buying and selling options with different strike prices but the same expiration date. Bear spreads can be constructed using either put options or call options. Typically, an investor would buy an option with a higher strike price and sell an option with a lower strike price, aiming to profit from a decrease in the market price. The risk in a bear spread is limited, as is the potential profit, but it provides an opportunity to gain from a declining market, making it suitable for investors with lower risk tolerance.

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Gravestone Doji
The term gravestone doji refers to a bearish indicator commonly used in trading by technical analysts. A gravestone doji is a bearish reversal candlestick pattern that is formed when the open, low, and closing prices are all near each other with a long upper shadow. The long upper shadow suggests that the bullish advance at the beginning of the session was overcome by bears by the end of the session. This often comes just before a longer-term bearish downtrend.
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Gravestone Doji

The term gravestone doji refers to a bearish indicator commonly used in trading by technical analysts. A gravestone doji is a bearish reversal candlestick pattern that is formed when the open, low, and closing prices are all near each other with a long upper shadow. The long upper shadow suggests that the bullish advance at the beginning of the session was overcome by bears by the end of the session. This often comes just before a longer-term bearish downtrend.

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Nominal Yield

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Nominal Rate Of Return

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Book Value Per Common Share

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