In the Trade Finder, a vertical debit spread using puts only. A net debit transaction established by selling a put and buying another put at a higher strike price, on the same underlying, in the same expiration. It is a directional trade where the maximum loss = the debit paid, and the maximum profit = the difference between the strike prices less the debit. No margin is required.
An option strategy designed to benefit from falling prices by purchasing a put option with a high exercise price and selling one with a low exercise price.
Buying a put option and selling another put option, both with the same expiry date. The put option sold usually has the lower strike price. The money paid buying the put option, is offset with the money received for selling the other put option. Losses are capped, as are profits.
A strategy in which a trader sells a lower strike put and buys a higher strike put to create a trade with limited profit and limited risk. A fall in the price of the underlying increases the value of the spread. Net debit transaction; Maximum loss = d ifference between strike prices less the debit; no margin.
A spread option strategy in which the investor attempts to take advantage of falling asset prices by purchasing a put option with a high strike price and simultaneously selling a put with a low excercise price.
a debit spread created by purchasing a higher
a debit spread created by purchasing a put option and selling a put with a lower strike price and the same expiration date
a type of Vertical Spread
A spread designed to exploit falling exchange rates by purchasing a put option with a high exercise price and selling one with a low exercise price.
The purchase of a put with a high strike price against the sale of a put with a lower strike price in expectation of declining prices. The maximum profit is calculated as follows: (high strike price - low strike price) - net premium received where net premium received = premiums paid - premiums received.
The bear put spread is a limited profit, limited risk options trading strategy that can be used when the options trader is moderately bearish on the underlying security. It is entered by buying higher striking in-the-money put options and selling the same number of lower striking out-of-the-money put options on the same underlying security and the same expiration month.