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intro to spreads

Short Put Vertical

Analyzing the risk profile of a short put vertical

Recap

  • Short put verticals are a bullish strategy
  • The most you can make on a short put vertical is the credit you receive for it
  • The most you can lose on a short put vertical is the width of the strikes minus the credit received
  • Wider verticals carry greater risk, but offer greater profit potential
  • Narrow verticals are slow moving, but have lower monetary risk
  • Short put spreads can have a very high POP when set up correctly

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intro to spreads