Bull and Bear spreads require taking a long position in one option and a short position in another option with a different strike price.

Question

Quizplus · Accepted Answer

Bull and Bear spreads involve taking a long position in one option (buying an option) and a short position in another option (selling an option) with a different strike price, but the same underlying asset and expiration date, to capitalize on expected upward (bull) or downward (bear) movements in the market.

Bull and Bear Spreads Require Taking a Long Position in One