The end result is a bearish put spread, otherwise known as a debit spread.

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Maximum potential reward for a debit spread is limited to the difference between strikes, less net premium paid.

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Taking a closer look reveals a rather unusual debit spread on CSCO.

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One bullish options player positioned for continued share price appreciation in the next several months by initiating a debit call spread in the July contract.

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The combination of long stock and debit put spread positions the trader to make money on the upside if shares in Cree continue to rally, while also providing downside protection in the event of a pullback through February expiration.

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