Sell A Put And Buy A Put -

: 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 sell a put and buy a put

: 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. : Generate income from the premium or acquire

Selling and buying puts are fundamental techniques in options trading that can be used independently or combined into strategic "spreads" to manage risk. Put Option Explained - TD Bank : This

: Substantial; you could be forced to buy a stock that has fallen significantly. Combining Them: The Put Spread

: 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.