1 / 6

Bear Put Spread

A Bear Put Spread is a bearish options strategy used when you expect a moderate decline in a stock's price. It involves buying a put option at a higher strike price and selling another put at a lower strike price. This limits both potential loss and profit, making it a cost-effective strategy for cautious bearish traders.

sri178
Download Presentation

Bear Put Spread

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/ Bear Put Spread

  2. What is a Bear Put Spread? Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/ Definition: • A bear put spread is a bearish options strategy where you: • Buy a put option at a higher strike price • Sell a put option at a lower strike price • Both options have the same expiration date Goal: • Profit from a moderate price drop in the underlying asset.

  3. How Does It Work? Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/ • Step 1: Buy a higher strike put (costs premium) • Step 2: Sell a lower strike put (receives premium) • Net Premium Paid = Cost of strategy • Lower Cost than buying a single put • Max Profit = Difference in strike prices – Net premium paid • Max Loss = Net premium paid

  4. When to Use a Bear Put Spread Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/ Moderately Bearish View • Expect the asset to fall slightly—not crash Hedging Tool • Great for protecting gains in a long position Defined Risk & Reward • Clear limits on both loss and profit, making it ideal for risk-averse traders

  5. Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/ Bear Put Spread with Navia Track & Execute Bear Put Spreads easily: • Navia Mobile App – User-friendly, on-the-go trading • Navia Web Platform – Full control with advanced analytics Why Traders Like It? • Reduced premium cost • Simple to manage • Great for cautious bearish outlooks

  6. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/

More Related