: This is a bearish strategy. You pay a fee (premium) for the right to sell a stock at a specific price (strike price). Goal : Profit from a significant drop in the stock price. Max Risk : Limited to the premium paid.
: Generate income from the premium or acquire stock at a discount.
A "Put Spread" involves simultaneously buying and selling puts on the same stock with the same expiration date but different strike prices. This is a "risk-defined" trade. Put Option Explained - TD Bank
: This is a neutral-to-bullish strategy. You receive a premium in exchange for the obligation to buy the stock at the strike price if it falls below that level.
