Bull Put Spread

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Buy 1 OTM Put + Sell 1 ITM Put

Limited Upside Profit
If Price of Underlying >= Strike Price of Short Put
Max Profit = Net Premium Received - Commissions Paid

Limited Downside Risk
If Price of Underlying <= Strike Price of Long Put Max Loss = Strike Price of Short Put - Strike Price of Long Put Net Premium Received + Commissions Paid Breakeven Point
Breakeven Point = Strike Price of Short Put - Net Premium Received

 

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