Sell A Put - And Buy A Put

: This is a neutral-to-bullish strategy. You receive a premium in exchange for the obligation to buy the stock at the strike price if it falls below that level.

: Substantial; you could be forced to buy a stock that has fallen significantly. Combining Them: The Put Spread sell a put and buy a put

Selling and buying puts are fundamental techniques in options trading that can be used independently or combined into strategic "spreads" to manage risk. : This is a neutral-to-bullish strategy

: Generate income from the premium or acquire stock at a discount. sell a put and buy a put