OTM bear put

I am aware of bear spread but when I encountered a problem where the higher strike still happens to be ATM option for OTM bear spread.

Any clue as to why?

They really, really, really don’t want to lose any money if the price of the underlying increases; i.e., if their view is wrong.

Note that historically CFA Institute has always used one OTM option and one ITM option for bear spreads and bull spreads. Always.

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Thanks Bill!!

My pleasure.

By the way, the 2023 exam #5 will be up on the website in the next day or two.


Thanks for the update.

Whether I pass or not, definitely learned a lot from you. Thanks.

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My pleasure.

Glad to have been some help.

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CFAI website? thought they only released two.