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.