Anticipations
An upward move in the underlying asset is anticipated.
Characteristics
Limited profit / unlimited loss.
Max profit - limited to the net credit received.
Max loss - unlimited.
Creating
Sell a put option.
Example
Security(IBM) price - $100
Short 1 IBM 90 Put - $2
Max profit = $2 * 100 = $200
Max loss = unlimited
Option Position at Expiration
Comments
Sell ITM put option if very bullish, sell OTM put option if
less.
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