### Comment:
One more question that I wasn’t able to find a clear answer too: 
  
 Would I be able to buy a put for example with a strike of $100 for 0.10 and then sell a put with a higher strike (like $120) for 0.7. Or in this case would I need the difference in potential between the put I bought and the one I sold in my account as collateral?

### REPLY:
It depends on your broker and how they handle it, but you would need either cash or some form of value such as margin that your broker finds acceptable. 
  
 Typically you need the $2000 in cash as collateral that will be held but you should check with your broker to find out what options they offer.

### END.