What is a Bear Put Spread

A Bear Put Spread is an options strategy that involves 2 transactions.

A trader initiates a Bear Put Spread by Buying a Put Option, and conversely Selling a Put option in the same expiration month.

The sold put option, also referred to as the short put, must be at a lower priced strike price than the bought put option, also known as the long put.

By selling -1 put, and buying +1 put at a higher strike price the trader initiates a Debit Spread.

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