Duration: 3:57

A bear put spread consists of buying one put and selling another put, at a lower strike, to offset part of the upfront cost.

Contributed By: The Options Industry Council (OIC)

Study Notes:

Original study notes from Options Industry Council (OIC) Education


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Disclosure: Multiple Leg Strategies

Multiple leg strategies, including spreads and straddles, will incur multiple commission charges.

Disclosure: Options Trading

Options involve risk and are not suitable for all investors. Multiple leg strategies, including spreads, will incur multiple commission charges. For more information read the “Characteristics and Risks of Standardized Options” also known as the options disclosure document (ODD) or visit ibkr.com/occ