Purecycle Technologies Inc (PCT)

[Bearish | Limited Profit | Limited Loss] The long put or bear put diagonal spread, also known as a poor man's covered put, is a long put diagonal option strategy where you expect the underlying security to remain stable or to slightly decrease in value. The long put diagonal option strategy involves buying a longer-term expiration put option and selling a nearer-term expiration put option at a lower strike price. Maximum loss is the difference between the premium paid for the long put and the premium received for the short put (Net Debit). Maximum profit is the difference in strike values minus the Net Debit, if the spread is closed at the first expiration date. The bear put diagonal strategy succeeds if the security price is below breakeven (higher strike - Net Debit) at expiration. Maximum profit is achieved if the security price is at or above the lower strike price at expiration.