that's just what coand carter did on priceline. carter thought the booking company shares were preparing for their decent. >> we go short. >> shorting the stock you might as well take a trip on this. so to define his risk, they bought the june 750 strike put for $38. to make money, mike needs priceline shares to fall below the put strike price by more than the cost of the trade for $712 by june expiration. $38. i thought we were looking for bargains. show us how to do this for less. >> sell the 700s. >> mike sold the june put for $20 and completed his put spread. he did something better. he booked a ticket to easy profits and here's how. between the $38 he spent buying one put and the $20 he collected selling the other. he cut the cost to just $18. now instead of needing priceline shares to fall below $712. mike can see profits if the stock falls by more than the $18 he spent on the trade or below $732 by the june expiration. there is a trade off. by selling that put, mike capped the gains to the difference of the strike of the put