Because the Bear Put Spread is a fast-moving directional trade, you might find yourself in a situation where the stock is “chopping” sideways and you aren’t sure if you should hold or fold. This is exactly where we become your most valuable asset.

How to use us for the Smarter Bear: If SPY is sitting at $671 and your breakeven is $670.48, you are in a “tight” spot. Click the Chat Bubble and ask:

• “what is the probability of SPY finishing below $670.48 by Dec 19th?”

• “show me the current ‘Extrinsic Value’ left in my $672/$668 spread.” (If there is very little extrinsic value left, it might be time to close and move on).

• “is it better to roll my Bear Put Spread or take the loss?”

👨‍🏫 Mentor’s Insight: The Psychology of the ‘Debit’

“Stephen here. The hardest part of the Bear Put Spread is the psychological shift. In our ‘Income’ strategies, we are used to time being our friend. In this strategy, Time is a tax.

If the bearish move you predicted hasn’t happened within the first two weeks, don’t be afraid to pull the plug for a small loss. We call this ‘Live to fight another day.’

In our weekly 1-on-1 mentoring sessions, I’ll help you review your ‘Trade Log’ to see if you’re holding onto your losers for too long. Unsure if your current SPY trade is still valid? Book a Free Strategy Call today and let’s run the Quant probability model together.”

🛠️ Stephen’s Implementation Tip:

• The 50% Decay Rule: If 50% of your time has passed (21 days out of 42) and the stock hasn’t moved toward your breakeven, the probability of a win drops significantly. Consider exiting.