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Bear Put Spread. Ma080106 許琇評. Maximum Loss = 179 Maximum Profit = 21 Breakeven Point = 7279. Profit Potential.
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Bear Put Spread Ma080106 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.