put spread


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Put Spread

An option spread in which one has a long position in a put while having a short position on another put on the same underlying asset with a different strike price and/or expiration date. One uses a put spread to profit from price movements in the underlying asset. See also: call spread.

put spread

An option position in which a put option is purchased while another put option on the same security is sold short. The two puts have different strike prices, different expiration dates, or both. Also called option spread. Compare call spread.
References in periodicals archive ?
Inspired by CBOE's flagship strategy benchmark series, the new benchmarks use RUT options to create a CBOE Russell 2000 PutWrite Index, a CBOE Russell 2000 Zero-Cost Put Spread Collar Index, a CBOE Russell 2000 30-Delta BuyWrite Index, a CBOE Russell 2000 Conditional BuyWrite Index, and a CBOE Russell 2000 One-Week PutWrite Index.
This put spread was put in place when the FTSE 100 Index was trading at around 7000 and was designed to enable the Company to retain exposure to the Smaller Companies Portfolio whilst neutralising some of the gearing that would impact on net asset value in a falling market.
The bull call spread and the bull put spread are the most common strategies if the investor's view of the market or stock is moderately bullish.
Ventas popped up on our hot by options volume market scanner in the second half of the trading session after one cautiously optimistic investor bought a large amount of stock in combination with a delta neutral put spread in the August contract.
Alternatively, an ATM put spread on the RTS Index or a single asset would be a cheaper way to protect a portfolio, though the protection will stop working at the lower strike.
Barclays' quarterly Startups and Closures report - for the third quarter suggests that while Britain sizzled in the summer heat, the number of business start-ups cooled as Britons put spread sheets and business plans to one side and took a well-earned siesta according to Barclays figures.
Similarly, the put spread involves the sale of put option 1 and purchase of put option 2 and is expressed as
CBOE S&P 500 Zero-Cost Put Spread Collar Index (ticker symbol: CLLZ) The CBOE S&P 500 Zero-Cost Put Spread Collar Index is designed to track the performance of a hypothetical option trading strategy that 1) holds a long position indexed to the S&P 500 Index; 2) on a monthly basis buys a 2.
Tarun wants to use the bear call spread, while Rahul wants to use the bear put spread.
A bearish approach--buying a put spread (buy 10s, sell 5s)
Assuming the 39-strike puts were sold, it appears we've unraveled a long put spread on VMW.
In today's column, we're on a mission to dissect a theoretical ratio put spread on mine-protected vehicle mogul Force Protection, Inc.