In the Trade Finder, a vertical credit spread using puts only. This is a net credit transaction established by buying a put and selling 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 difference between the strike prices, less the credit, and the maximum profit = the credit received. Requires margin.
A strategy in which a trader sells a higher strike put and buys a lower strike put to create a trade with limited profit and limited risk. A rise in the price of the underlying increases the value of the spread. Net credit transaction; Maximum loss = difference between strike prices less credit; Maximum gain = credit; requires margin.
A spread designed to take advantage of rising asset prices by selling a put option with a high exercise price and buying one with a low exercise price.
a bullish strategy in which a put option is sold and a lower put option strike price is bought
a credit spread created by purchasing a lower
a credit spread created by purchasing a put option and selling a put option with a higher strike price and the same expiration dates
an option strategy in which an out of the money put is sold and an even further out of the money put purchased as insurance
a type of Vertical Spread
The purchase of a put with a low strike price against the sale of a call with a higher strike price; prices are expected to rise. The maximum potential profit equals the net premium received. The maximum loss is calculated as follows: (high strike price - low strike price) - net premium received where net premium received = premiums paid - premiums received.
The bull put spread is a limited profit, limited risk options strategy that can be used when the options trader is moderately bullish on the underlying security. It is entered by writing higher striking in-the-money put options and buying the same number of lower striking out-of-the-money put options on the same underlying security with the same expiration date.
