Bear Put Spread Option Strategy

Bear Put Spread Option Selling Strategy means it is the position where one is thinking that Stock Market will move in downward direction and at the same time doesnot want to be greedy.  What happens it is the prediction that Market be in downward trend but there is also probability that market could rise and there is also chance that prediction will become wrong of going in upward direction.

Example: As on 13th July 2023, Nifty Index is at 19440.  So, I predict market will continue to move in downward direction.  I want to have Limited Loss and Limited Profit.  As a trader I will purchase Nifty 27th July Expiry 19550 PE of one lot and I will sell Nifty 27th July Expiry 19350 CE of one lot.  By doing this my loss will be limited and my profit will also be limited.



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