Basic Put Spreads 
Put spreading strategies do not differ substantially in theory from their accompany-
;,,..,,. ,...,,1] v-n..-a<>rl vl-..-al-arriac Rol-h h11llich nnrl hP<>rich nocitionc r>!'.ln hP r>onctn1r>tPrl with .l.J..1.5 V(A,,1.1. .;Jt'.l.'\,.,U'L.L J\...l 1.Vf,A.VoJ• .Jl.,l''\Jl,....t..1. J.J\..1..1..1..1.V.a...._ f.4.1..1..._... ,._,...,_,'-4Ji.A.V..._.,._ ,t'"-"._,..._ ... ...__..._..._...,, .._,.__...,,._ -....,..., _.._,,.._.,....,,...,._ .....,._,_....,,_ , , ,,..._.,._""-
put spreads, as was also the case with call spreads. However, because puts are more 
oriented toward downward stock movement than calls are, some bearish put spread 
strategies are superior to their equivalent bearish call spread strategies. 
The three simplest forms of option spreads· are: 
1. the bull spread, 
2. the bear spread, and 
3. the calendar spread. 
The same types of spreads that were constructed with calls can be established with 
puts, but there are some differences. 
BEAR SPREAD 
In a call bear spread, a call with a lower striking price was sold while a call at a high­
er striking price was bought. Similarly, a put bear spread is established by selling a 
put at a lower strike while buying a put at a higher strike. The put bear spread is a 
debit spread. This is true because a put with a higher striking price will sell for more 
than a put with a lower striking price. Thus, on a stock with both puts and calls trad­
ing, one could set up a bear spread for a credit ( using calls) or alternatively set one 
up for a debit (using puts): 
329