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.

We can implement a bear call spread by selling one in-the-money (ITM) $35 call and buying ... The $35 long put cost $5, and selling the $30 put results in a $2 credit, costing us $3 for the ...