Put Spread

DESCRIPTION: A put spread is a bearish strategy, with limited risk and limited upside potential. To construct a long put spread, one buys a put option and sells one with a lower strike price using the same expiration date on both options. It is sometimes referred to as a “put vertical.” It gets this name because strikes are listed vertically on the options table. Put Spreads are often referred to “Debt Put Spreads” because the price of the option purchased is higher than the … Continue reading Put Spread