Bear Put SpreadMa080106

許琇評

Maximum Loss = 179 Maximum Profit = 21 Breakeven Point = 7279

Profit Potential

• This strategy requires the investor to buy an in-the-money put option and sell an out-of-the-money put option on the same stock with the same expiration date. This is also known as a vertical bear put spread.

• If the stock price closes below the out-of-the-money put option strike price on the expiration date, then the investor reaches maximum profits.