Bull and Bear Spreads in Options

What are bull and bear spreads in options?

A Bull Spread is an options strategy set up for potential profit when the underlying asset's price is believed to rise. Conversely, a Bear Spread is designed to potentially profit when there's an anticipated decrease in the price.
 
Consider Sarah, an options trader. She might employ a Bull Spread by buying a call option at a ₹40 strike and selling another call at a ₹50 strike, speculating a moderate price rise. In contrast, using a Bear Spread, she might buy a put option at a ₹40 strike and sell another put at a ₹30 strike, forecasting a price drop.


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