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Futures Traders Helping Future Traders
Option Strategy #3: Bear Put Spread
Buy Put A, and Sell Put B (Lower Strike Price)
Use the Bear Put Spread when you think the market will go down but are unsure of how low, or if
you think the market will go down and the straight put option position is very expensive and you
want to be able to get an option with a closer strike price.
The Profit is limited to the difference between the strike prices, and at expiration the break even is
equal to the buy side strike price minus the net amount paid for the spread.
