Bull Put Spread Strategy
BullishIntermediateCredit Spread
Collect premium with bullish outlook while limiting risk with a protective long put.
How It Works
1
Sell Higher Strike Put: Receive premium for the more expensive put.
2
Buy Lower Strike Put: Pay premium for protection if stock falls.
3
Net Credit: Keep the difference as profit if stock stays above short strike.
Key Metrics
Max Profit:Net Credit Received
Max Loss:Strike Difference - Net Credit
Lower Breakeven:Short Strike - Net Credit
Profit Zone:Stock above short strike
Risk/Reward:Usually 2:1 to 3:1