Bull Put Spread English

Bull Put Spread

Bull Put Spread is an options strategy used by investors who anticipate a moderate increase in the price of the underlying stock. It involves selling a put option at a higher strike price and buying another put option at a lower strike price. 

Note: Strike price is the set price at which an option is bought or sold.

Content ID:

What Is A Bull Put Spread?

A Bull Put Spread is a straightforward strategy for making money if you think the market will slightly increase. You start by selling a put option at a higher price and buy another at a lower price. This action gives you an immediate income from the start.

This strategy is used when expecting a modest rise in the market. It starts by selling a put option at a higher price and buying another at a lower price. This approach provides immediate income and caps potential losses to a certain amount. The biggest gain comes from the initial premium if the asset’s value remains over the sold put’s price when the options expire. The a