 Welcome to course 4. This is the module on intermediate option strategies. And in this course, we are going to look at a bear put spread. In the previous two courses, we've looked at a bull call spread and a bear call spread. And in this course, we're going to look at a bear put spread. We need to focus on the word bear. So this is going to be a bearish strategy because it says so and it's going to use puts. In a bear put strategy, we are going to extend the long put just like we extended the long call to create the bull call spread. So let's jump into the option chain and my candidate for the bear put spread is Netflix. Netflix just reported earnings a day or two ago and they got blasted because of all the blunders they did last year. They seem to have lost a lot of revenues and customers. So Netflix got hammered yesterday. It went down by about $15 and today it seems to be down by another $5 or $6. When this kind of onslaught sets in, I think it will last for a few more days or weeks. So it's a good candidate for a bearish strategy. Let's look at the Netflix options. Let's look at June. So if we look at June, so now we're looking at the put side here. And if we were bearish on Netflix, we could just buy a put option. So we could buy the 75 put. We could buy the 80 put although that will have a delta of close to 50. So that might be a little too high. Perhaps the 75 put or the 70 put would be good candidates for a long put. So let's do that. Let's see what happens. Let's choose 75 strike price, 10 contracts of Netflix. And if we were just buying the 75 strike put, we would be paying a premium of $4.10. The problem with this position is if we are wrong in our outlook and if Netflix starts to go up, then we are looking at losses. So we should have a way to somewhat control that and if we can control that, then we would be required to make a compromise on the upside. So perhaps at the 65 strike price, we can maybe limit our profits there. So we can say in return for lowering my exposure to this trade, I can sell the 65 put and therefore limit my profits at 65.