Bull Put Spread
A credit spread that profits when the stock stays above the short put strike. You sell a higher-strike put and buy a lower-strike put for protection, collecting a net credit. The bullish mirror of the bear call spread.
Payoff Diagram
How to Set Up This Trade
Sell a put at a higher strike price and simultaneously buy a put at a lower strike price, both with the same expiration.
Trade Setup — 2 Legs
When to Use This Strategy
You are bullish or neutral and expect the stock to stay at or above the short put strike. Works well when implied volatility is high, so there is more premium to collect.
Tips from the Pros
- 1
This is a credit spread — you receive money upfront and profit if the stock stays up.
- 2
Choose a short strike with a delta of 0.30 or less for a higher probability of profit.
- 3
Manage at 50% of max profit, and close or roll if the short strike is tested rather than waiting for max loss.
Quick Reference
Max Profit
Limited to the net credit received.
Max Loss
Difference between strike prices minus the net credit received (per share).
Breakeven
Higher (short) strike price - net credit received.
Best IV Environment
High IV
Time Decay (Theta)
Helps (positive theta)
Risk Level
Low RiskLearn More
Our courses cover this strategy with real trade examples and live market analysis.
Browse CoursesRelated Bullish Strategies
Other strategies for a bullish market outlook.
Long Call
Buy a call option to profit from a rise in the underlying stock. This is the simplest bullish options strategy with unlimited upside potential and limited downside risk.
Bull Call Spread
A debit spread that profits from a moderate rise in the stock price. By selling a higher-strike call against your long call, you reduce cost and cap your risk — but also cap your upside.
Cash-Secured Put
Sell a put option while holding enough cash to buy the stock if assigned. This strategy generates income while giving you a chance to buy a stock you like at a lower price.