Bear put option spread strategy 7 corporation


By John Summa, CTA, PhD, Founder of OptionsNerd.comToo often, new traders jump into the options game with little or no understanding of how options spreads can provide a better strategy design. With a little bit of effort, however, traders can learn how to take advantage of the flexibility and full power of options as a trading vehicle. A bull put spread is a variation of the popular put writing strategy, in which an options investor writes a put on a stock to collect premium income and perhaps buy optkon stock at a bargain price.

A major risk of bexr writing is that the investor is obligated to buy the stock at the put strike price, even if the stock falls well below the strike price, resulting in the investor facing an instant and sizable loss. DescriptionA bull put spread involves being short a put option and long another put option with the same expiration but with a lower strike. Because of the relationship between the two strike prices, the investor will always receive a premium (credit) when initiating this position.This strategy entails preciselyCourse Objective:To understand various option strategies that can be used given a bearish outlook.

When an investor believes individual stocks or the markets are headed lower there are numerous ways to implement option strategies to benefit from this outlook. This course will cover the risks and potential rewards of a strateyy of these strategies. This course discusses the various option strategies that take advantage of a Bear market.

Course Chapters Chapter 1 - IntroductionThe introduction sets the groundwork for the differences between Bear market option strategies and outright stock or index ownership. The three main benefits of Bear market option positions bear put option spread strategy 7 corporation pr.




Bear put option spread strategy 7 corporation

Bear put option spread strategy 7 corporation