This strategy consists of being short one call and long another call with a higher strike; also long one put and short another put with a lower strike. Typically, the call strikes are above and the put strikes below the current level of the underlying stock, and the distance between the call strikes equals the distance between the put strikes. All options must be the same expiration. This strategy is the combination of a bear call spread and a bear put spread.
Looking for falling stock price.
This strategy is the combination of a bear call spread and a bear put spread. A key part of the strategy is to initiate the position at even money, so the cost of the put spread should be offset by the proceeds from the call spread.
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