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Most people have heard about the bull and bear markets when investing. Everyone loves a good bull market because of how profitable it can be, but people also love a good bear market if they trade put options and other investments that focus on the market falling in value. Bull and bear spreads are both very different. These two situations in the stock market represent how a stock’s value will go up or down. A bull spread is when investors feel the stock will go up in value. The bear spread is the opposite. It is that simple, but there is actually more to these two situations for options strategies than what meets the eye.
