diagonal bear spread

diagonal bear spread definition - finance
An option-trading strategy that involves purchasing a rela-
tively long-term option contract and simultaneously selling a shorter-term contract that has a lower strike price. The investor profits if the price declines, within limits. This spread can be constructed using either puts or calls.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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