OTM Put Time Spread
A.K.A. Put Time Spread
investment
Opinion: Bearish to very Bearish.
Example:
Short 1 Aug 55 Put @ 1 1/16
Long 1 Oct 55 Put @ 2 3/16
Description: A Time Spread contains two options with the same strike price but different expiration months. In this example, OTM Puts are used because of the investor’s bearish bias. The ITM 55 Call could also be used.
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