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1/ Another #TradingThursday is coming right up…
We are discussing Debit Spreads again, particularly Bear Put Spreads. 🐻🛑📉
We are discussing Debit Spreads again, particularly Bear Put Spreads. 🐻🛑📉
2/ A Bear Put Spread is a particular options strategy composed of a long put and a short put. As the name implies, it is a directional strategy that pays when the asset goes down.
3/ Specifically, a bear put spread is the following ✌️ two-part strategy:
- Buy a put with a higher strike (typically near the money or slightly out of the money)
- Sell a put with the lower strike and at the same expiry
- Buy a put with a higher strike (typically near the money or slightly out of the money)
- Sell a put with the lower strike and at the same expiry
