Bear Put Spread

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Bear Put Spread

In options, a strategy in which one buys put options on a security and then sells the same number of put options on the same security with the same expiration month at a lower strike price. A bear put spread limits both the potential profit and the potential risk, but is most profitable if the security drops moderately in price.
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Six strategies: covered calls, naked puts, bull put spreads, bull call spreads, bear call spreads and bear put spreads