Bull put spread

Option Strategy: Bull Put Spread

When Option trader thinks that the underlying stock price goes up moderately in near term. It is implemented by selling higher striking in-the-money put option and buying a lower striking out-of-the-money put option on the same underlying stock with the same expiration date.   Maximum profit achieved when the price of underlying is greater than or equal to the strike price of the short put. Maximum loss occurs when the price of underlying is less than or equal to the strike price of the long put.
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