Bear Put Spread (1 Aug 11)

Bear Put Spread (ETFs)

A Bear Put spread is a debit spread created by purchasing a Put with a higher strike price and selling a Put with a lower strike price.  Both options expire in the same month.  This is a bearish strategy and should be implemented when you expect the market to close below the strike price of the short Put option—the point of maximum reward (at expiration).   

XRT  $53.26

Buy to Open (1) Aug 11 56 P @ $3.30

Sell to Open (1) Aug 11 51 P @ $0.66 

Net Debit: $2.64 ($264.00)

Breakeven: $53.36

Max. Profit: $236.00

Pct Return: 89.4% (20 days)

All positions displayed are for educational purposes only and are not intended to be recommendations.