STRATEGY

Bear Put Spread

MARKET OPINION

Bearish

MARKET POSITION

Sell a lower strike price put and buy a higher strike price put on the same commodity with the same expiration date

OPTION STRATEGY
DEBIT/CREDIT

Net debit [premium received is less than premium paid]

PROFIT POTENTIAL

Limited to the [difference between the strike prices] minus the net debit

PROFIT POINT

Any futures price above the [higher strike price minus net debit]; Maximum profit point is any futures price at or below the lower strike price

LOSS POTENTIAL

Limited to the net debit

LOSS POINT

Any futures price above the [higher strike price minus net debit]; maximum loss point is any futures price at or above the higher strike price

BREAK-EVEN-POINT

Higher strike price - net debit

MARGIN REQUIRED

No

DELTA

[Delta of put bought]-[Delta of put sold]