What is the primary advantage of using spreads in options trading compared to naked positions?

Higher potential profits Increased risk visibility Lower capital requirements Guaranteed profitability

What market outlook does a Bear Put Spread strategy typically target?

Moderately bullish Outrightly bullish Moderately bearish Neutral market sentiment

In a Bear Put Spread, which option is typically bought and which is sold?

Buy an Out of the Money Put, Sell an In the Money Put Buy an In the Money Put, Sell an Out of the Money Put Buy an Out of the Money Call, Sell an In the Money Call Buy an In the Money Call, Sell an Out of the Money Call

What is the maximum loss in a Bear Put Spread strategy?

Unlimited Equal to the spread Equal to the net debit Equal to the premium paid for the long put

When is the best time to implement a Bear Put Spread strategy in terms of volatility expectations?

When volatility is expected to decrease When volatility is expected to remain stable When volatility is expected to increase Volatility expectations are irrelevant for this strategy