A bear spread is a bear option strategy used when an investor expects a moderate decline in the price of the underlying asset.
There are two types of bearish spreads that a trader can initiate: bearish put spread and bearish call spread.
The strategy involves the simultaneous purchase and sale of put or call options on the same underlying contract with the same expiration date but different strike prices.
Bearish spreads maximize profits if the underlying closes at or below a lower strike price.
A collar is an options strategy that involves buying a put option down and selling a put option up, which is used to protect against large losses but also cap large profits up.