Bear Put Spread (6 Sep 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).  

VWO  $42.79

Buy to Open (1) Oct 11 46 P @ $4.10

Sell to Open (1) Oct 11 41 P @ $1.30 

Net Debit: $2.80 ($280.00)

Breakeven: $43.20

Max. Profit: $220.00

Pct Return: 78.6% (46 days)

EEM  $41.56

Buy to Open (1) Oct 11 45 P @ $4.35

Sell to Open (1) Oct 11 40 P @ $1.61 

Net Debit: $2.74 ($274.00)

Breakeven: $42.26

Max. Profit: $226.00

Pct Return: 82.5% (46 days)

DIA  $112.28

Buy to Open (1) Oct 11 117 P @ $7.30

Sell to Open (1) Oct 11 112 P @ $4.30 

Net Debit: $3.00 ($300.00)

Breakeven: $114.00

Max. Profit: $200.00

Pct Return: 66.7% (46 days)

SPY  $117.85

Buy to Open (1) Oct 11 124 P @ $8.94

Sell to Open (1) Oct 11 119 P @ $5.90 

Net Debit: $3.04 ($304.00)

Breakeven: $120.96

Max. Profit: $196.00

Pct Return: 64.5% (46 days)

XLE  $66.22

Buy to Open (1) Oct 11 70 P @ $6.05

Sell to Open (1) Oct 11 65 P @ $3.10 

Net Debit: $2.95 ($295.00)

Breakeven: $67.05

Max. Profit: $205.00

Pct Return: 69.5% (46 days)

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