Put Spreads (Vertical)

What this video covers

• Why put spreads anchor on the higher strike while call spreads anchor on the lower strike, and the "build down from the ceiling" visual that keeps it straight
• How to set up a bear put spread (debit) by buying the higher-strike put and selling the lower-strike put, and why it is always a debit even though "sell" appears in the structure
• How to set up a bull put spread (credit) by selling the higher-strike put and buying the lower-strike put for a moderately bullish outlook
• The max gain, max loss, and breakeven formulas for both debit and credit put spreads, and why they are mathematical mirror images
• Why a bear put spread and a bull put spread with the same strikes share the exact same breakeven price
• When max gain and max loss actually occur in terms of exercise versus expiration, using the classic 60/50 strike example
• The Sam-the-supervisor exam traps: the "sell" head fake on debit spreads, and the opposite-end breakeven rule for calls versus puts