The strategy consists of the following: Short one ITM put Long two ATM puts Short ... the trader faces a maximum loss that equals the spread width minus the credit received. Another market-neutral ...

An in-the-money (ITM) put option has a strike price ... To set up a bull put spread, the trader would: This results in a net credit of $2 per share, equal to $200 per contract.

If you've ever believed that a stock was headed lower but didn't want to take on the risk of short-selling the stock, then you can consider using options strategies instead. We've heard horror stories ...