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).
VWO $41.60
Buy to Open (1) Sep 11 45 P @ $3.70
Sell to Open (1) Sep 11 40 P @ $0.90
Net Debit: $2.80 ($280.00)
Breakeven: $42.20
Max. Profit: $220.00
Pct Return: 78.6% (19 days)
EEM $40.52
Buy to Open (1) Sep 11 44 P @ $3.80
Sell to Open (1) Sep 11 39 P @ $0.85
Net Debit: $2.95 ($295.00)
Breakeven: $41.05
Max. Profit: $205.00
Pct Return: 69.5% (19 days)
EWZ $61.32
Buy to Open (1) Sep 11 66 P @ $5.15
Sell to Open (1) Sep 11 61 P @ $2.05
Net Debit: $3.10 ($310.00)
Breakeven: $62.90
Max. Profit: $190.00
Pct Return: 61.3% (19 days)
FXI $36.96
Buy to Open (1) Sep 11 40 P @ $3.30
Sell to Open (1) Sep 11 35 P @ $0.66
Net Debit: $2.64 ($264.00)
Breakeven: $37.36
Max. Profit: $236.00
Pct Return: 89.4% (19 days)
USO $33.15
Buy to Open (1) Sep 11 37 P @ $4.05
Sell to Open (1) Sep 11 32 P @ $0.92
Net Debit: $3.13 ($313.00)
Breakeven: $33.87
Max. Profit: $187.00
Pct Return: 59.7% (19 days)
All positions displayed are for educational purposes only and are not intended to be recommendations.
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