Episode 7 of 'Saxo Options Talk': the strategy of put spreads Episode 7 of 'Saxo Options Talk': the strategy of put spreads Episode 7 of 'Saxo Options Talk': the strategy of put spreads

Episode 7 of 'Saxo Options Talk': the strategy of put spreads

Options 10 minutes to read
Koen Hoorelbeke

Options Strategist

Summary:  In Episode 7 of 'Saxo Options Talk,' Koen Hoorelbeke and Peter Siks delve into the nuanced strategies of put spreads, providing a roadmap for traders to leverage these positions in bearish or neutral market environments.

Introducing episode 7 -the strategy of put spreads

The seventh episode of 'Saxo Options Talk', titled "The Strategy of Put Spreads," sees hosts Koen Hoorelbeke and Peter Siks dissecting put spreads in depth. This episode is geared toward equipping traders with the knowledge to utilize long and short put spreads effectively, whether to express a bearish view or as a precise hedging technique.

Demystifying Put Spreads

Put spreads, encompassing both long and short positions, offer traders a spectrum of strategic options. This episode provides insight into the mechanics of put spreads and contrasts them with naked puts, outlining the clear advantages and defined risk profiles of these strategies.

Key Learning Points

  • Advantages of Put Spreads: Explore the defined nature of put spreads, how they can cap risks, and why they are a preferred strategy over naked puts, especially in avoiding margin calls and unexpected market moves.
  • Strike Selection Strategy: Get to grips with how to choose the right strike prices for put spreads, aligning your positions with your market outlook and the interplay between probability and cost.

Strategic and Selection Insights:

  • Optimizing Put Spreads: Understand the balance between being a premium buyer or seller, and the effects of volatility and time decay on these positions.
  • Risk and Reward Tactics: Learn how to set profit targets and manage risks within put spread positions, taking into account the maximum loss benefits compared to using stop-loss orders.

Advanced Insights:

  • Volatility's Influence: Analyze how implied volatility, when higher than historical volatility, can impact put spread strategies, especially during key market events.
  • Risk Management in Action: Uncover strategies for managing positions through earnings announcements and other volatility-influencing events.

Practical Considerations:

  • Margin and Assignment in Put Spreads: Discuss the necessity of margin for short put spreads and the implications of deep in-the-money positions and dividend payouts on assignment risk.

Who Should Listen?

This episode is a valuable listen for all traders, whether you're looking to initiate your first put spread or you're seeking to refine an existing strategy with enhanced risk management techniques.

Subscribe and stay ahead

Ensure you don't miss this insightful episode by subscribing to 'Saxo Options Talk' on Podbean, or on Spotify. Keep yourself updated with the latest strategies and discussions in options trading.

Join the discussion

After tuning in, join me on my Threads profile to share your thoughts and insights on the episode. It's an excellent platform for engaging with fellow traders and enhancing our collective understanding of options strategies.

Your questions, our answers

We're eager to hear from you! Send your options-related questions to optionquestions@saxobank.com. Selected questions will be addressed in future episodes, providing customized advice and insights.


Episode 7 of 'Saxo Options Talk' is essential for any trader looking to navigate the markets with put spreads. Whether employing them for bearish bets or as part of a broader hedging strategy, Koen and Peter's insights ensure you're well-equipped to implement these strategies effectively. Tune in to sharpen your trading skills and strategy execution with us!

Previous podcasts:

Previous Volatility Reports: 

Related articles:

Previous "What are your options" articles: 

Previous "Investing with options" articles: 


Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website.

This article may or may not have been enriched with the support of advanced AI technology, including OpenAI's ChatGPT and/or other similar platforms. The initial setup, research and final proofing are done by the author.


Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.