Strategy Discussion
Bear Put Spread
Example: XYZ stock is trading at $39
Outlook: You are moderately bearish on XYZ stock and expect it to fall in the near term.
Possible strategy: Bear Put Spread
Buy 1 XYZ 30-day 40 strike Put at $3.50
Sell 1 XYZ 30-day 35 strike Put at $1.00
Net Debit $2.50
Buy 1 XYZ 30-day 40 strike Put at $3.50
Sell 1 XYZ 30-day 35 strike Put at $1.00
Net Debit $2.50
For more information on the risks and benefits of this strategy Click Here
copied from the CBOE
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