Bear Put Spread Options Strategy (Best Guide w/ Examples)

➥ Hypergrowth Options Strategy Course: geni.us/option...
The bear put spread (buy a put spread) strategy consists of buying a put option and selling another put option at a lower strike price. The strategy is more conservative than just buying a put because the loss potential is lower. However, the profit potential is lower as well.
In this video, you'll learn:
1. What are the characteristics of the bear put spread strategy?
2. What does the expiration risk graph look like when buying a put spread?
Also, you'll see three long put spread trade examples to demonstrate exactly how the strategy performs in different stock market environments. tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.

[@FIFA7Z]

Learned a whole chapter's worth in this one video, thanks!

[@projectfinance]

You're welcome! I'm glad you liked the video and thanks for the comment.

[@erikung4331]

Thank you for your time and experience!

[@bond211098]

We aren't considering the extrinsic price movements when we look at the expiration P/L graph, right? But they will fluctuate...

[@projectfinance]

Right. The expiration graph is only intrinsic.

[@waynejoseph7389]

Outstanding video series on Spread options Strategies

[@projectfinance]

Thank you!

[@hectorhrodriguez4679]

If my put spread gives me the max profit, do i get my net debit back?

[@projectfinance]

The max profit is the spread's maximum value - debit paid. If you close a spread at max profit, that simply means you sold it for a higher price than you bought it for. So yes, you get your debit back.

[@martinatora.h.4948]

thanks, I'm learning a lot :)

[@projectfinance]

You're welcome! Glad you liked the video!

[@ambidextrousTrades]

All of this is only true if you are pm the expiration date. Otherwise the stock price keeps on fluctuating and increase in implied volitility might screw up your exit plans.

[@yellowbird221]

EXCELLENT vid!!

[@projectfinance]

Thanks!