BEAR PUT SPREAD


Meaning of BEAR PUT SPREAD in English

The purchase of a put with a high strike price against the sale of a put with a lower strike price in expectation of declining prices. The maximum profit is calculated as follows: (high strike price - low strike price) - net premium received where net premium received = premiums paid - premiums received.

A guide to futures and options market technology English dictionary.      Английский словарь-руководство по фьючерсам и опционам рыночных технологий .