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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Spread printed on the CBOE just after 1:30PM ET, with a trader apparently selling 30K Sep 95/101 put spreads for 13c against a buyer of 15K Sep 100/104 put spreads for 31c.
Put spreads in Bed, Bath and Beyond as bearish positions are adjusted.
With shares off 16c to $52.43, 31K Jun 45 - 51 put spreads sold at 70c to buy 31K Aug 44 - 50 put spreads for 33c.
The bulk of the activity is the result of one time spread: 5K Jun - Jul 5 put spreads bought for 15c with shares trading flat at $6.05 and probably rolls a 5K lot of Jun 5 puts opened 31c on 3/20 with shares $6.23.
With USO now down 16.3% in the past two weeks, 38.1K Oct 12 - Dec 10.5 put spreads trade 55c Monday and the diagonal spread likely rolls long puts to December from October, down 1.5 strikes, in anticipation of further losses in shares over the next six months.
Jun 14th 2.5 put spreads bought for 9c - 20K AK Steel May - Jun 14th 2.5 put spreads bought for 9c.
May 24th 11.5 put spreads sold at 5c - 10K VALE May 12 - May 24th 11.5 put spreads sold at 5c.
Another notable spread is a four-way: 16.3K May 13 - 19 put spreads at $3.37 along with 16.3K Aug 14 - 19 put spreads for $3, possibly rolling a long vertical to Aug from May.
Put spreads in Expeditors International as shares drop nearly 5%.
The stock down 1% to $99.55 and Jun 90 - 95 put spreads trade in small lots at $1.10 while Jun 105 - 110 call spreads also trade in small lots for $1.45.
Earlier, May 24th 81 - 82 put spreads were sold at 12c.
Jun 9 put spreads sold at 32c - 12.5K Cenovus Energy May 10 - Jun 9 put spreads sold at 32c.

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