Bear Put Spread: A strategy in which a trader sells a lower strike put and buys a higher strike put to create a trade with limited profit and limited risk. A fall in the price of the underlying increases the value of the spread. Net debit transaction; Maximum loss = d ifference between strike prices less the debit; no margin.

Bull Put Spread: A strategy in which a trader sells a higher strike put and buys a lower strike put to create a trade with limited profit and limited risk. A rise in the price of the underlying increases the value of the spread. Net credit transaction; Maximum loss = difference between strike prices less credit; Maximum gain = credit; requires margin.

Covered Put: Cash secured put is an option strategy in which a put option is written against a sufficient amount of cash (or T-bills to pay for the stock purchase if the short option is assigned).

Uncovered Put Writing: A short put option position in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put.

Uncovered put option writing: A short put option position in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put.

Synthetic Short Put: A long stock position combined with a short call of the same series as that put.

Synthetic Put: A strategy equivalent in risk to purchasing a put option where an investor sells stock short and buys a call.

Synthetic Long Put: A short stock position combined with a long call of the same series as that put.

Strategy: With respect to option investments, a preconceived, logical plan of position selection and follow-up action.

Strategy: With respect to option investments, a preconceived, logical plan of position selection and follow-up action.

Ratio Put Spread: A bullish or stable strategy ion which a trader buys 1 higher strike put and sells two lower strike puts. This strategy offers limited risk and unlimited profit potential.

Married Put Strategy: The simultaneous purchase of stock and put options representing an equivalent number of shares when the position is designated at that time as a hedge. This is a limited risk strategy during the life of the puts because the stock can always be sold for at least the strike price of the purchased puts.

Married Put and Stock: The simultaneous purchase of stock and the corresponding number of put options. This is a limited risk strategy during the life of the puts because the stock can be sold at the strike price of the puts.

Covered Put Write: A strategy in which one sells put options and simultaneously is short an equal number of shares of the underlying security.