What is bull put spread?Bull Put Spread
Sell a higher-strike put and buy a lower-strike put, collecting cash up front; you keep it all if the stock stays above the higher strike, and the maximum loss is the spread width minus that credit.
Learn “bull put spread” in an animated lesson
- Advanced Option StrategiesIron Condors: Betting on a Range
Sell a strangle to collect premium, then buy protection further out on each side. Risk is capped, and you make money if the stock stays in the range.
- Advanced Option StrategiesVertical Spreads: Bull and Bear Spreads
Buy one option and sell another of the same type at a further strike: it costs less, and both the gain and the loss are capped.
Related terms
See how “bull put spread” works for yourself with an animation you can drag and play.
Go to “Iron Condors: Betting on a Range”