Amarin Corp Plc (AMRN)

[ferretmoney]

You set up a spread in your trading software or on the brokers website to sell the higher-priced put and buy the lower-priced put.

For example:
Buy 100 XYZ January 18, 2019 $39 put @ $15.00
Sell 100 XYZ. January 18, 2019 $29 put @ $7.00
Price of spread $8.00
Cost of trade $80,000.00 Credit not including commissions
Cash or Margin required $20,000 (difference between the $10 spread and the $8 premium received)
Note: the entire spread $100,000 is reserved cash or margin until the trade is closed or the risk is relieved by repurchasing the higher-priced put.

Maximum gain $80,000 less commissions
Maximum loss $20,000 plus commissions