An OPTION strategy that attempts to take advantage of a BEAR MARKET ; spreads can be structured as bearish CALL SPREADS (purchase of a CALL OPTION and sale of a second call, where the short call is struck closertothemoney) or bearish PUT SPREADS (purchase of a PUT OPTION and sale of a second put, where the long put is struck closertothemoney). Also known as MONEY SPREAD, PRICE SPREAD, VERTICAL SPREAD . See also BULL SPREAD .
Black’s Law Online Dictionary
