By selling that $668 put, you have capped your profit. You no longer care if SPY goes to zero—your profit stops growing once it hits $668.

• The Benefit: You lowered your “entry fee” from $1,406 to $152.

• The Result: You can place almost 9 of these spreads for the price of one single long put. This is how pros manage their “Risk Capital.”

👨‍🏫 Mentor’s Insight: The ‘Momentum’ Play

“Stephen here. I call this the ‘Smarter Bear’ because most retail traders blow their accounts buying expensive puts and watching them decay to zero.

By selling a lower strike put, you’re essentially saying: ‘I think the market is going down, but I don’t need it to go to zero to get rich.’ You are lowering your cost basis and making it much easier to hit a 100%+ return. >In our weekly 1-on-1 mentoring sessions, I’ll show you how to time these entries using the 200-Day Moving Average. See a breakdown coming? Book a Free Strategy Call today and let’s look at the $672/$668 spread on the live SPY chart.”

🛠️ Stephen’s Implementation Tip:

• The 1:1 Ratio: Always sell one for every one you buy.

• Quant Search: Click the chat bubble and ask Quant a question on the bear put spread.