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Published On: Mon, Apr 8th, 2013

Bear Put Spread

An options strategy used for anticipated decline in the price of the underlying asset.

Investors purchase put options at a specific strike price while also selling the same number of puts at a lower strike price.  The difference between the two strike prices, minus the net cost of the options is equal to the maximum profit to be gained.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.