Comparison of Two Bear Spreads: Bear Call or Bear Put?

In previous articles, we've compared two bull spread strategies: Bull Call Spread and Bull Put Spread. Today we'll walk you through two bear spread strategies.

Let's go through their definitions first.

While both strategies are designed to help investors profit from a bear market with defined risks, they differ in their approach and risk-reward profiles.

Next, let's take a closer look at the similarities and differences between these two strategies.

Risk Statement
The examples provided herein are for illustrative and educational purposes only and not intended to be reflective of results any investor can expect to achieve. The figures shown in the examples are not guarantees or projections, and no taxes or fees/expenses are included in the calculations which would reduce the figures shown. Actual results will vary.
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This article is for educational use only and is not a recommendation of any particular investment strategy. Content is general in nature, strictly for educational purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. All investing involves risks. Any examples are provided herein are for illustrative purposes only and not intended to be reflective of results any investor can expect to achieve.
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