Bull Put Spread

Bull put spread is one of the bullish options trading strategies that options traders can implement when they are a little bullish on the movement of the underlying assets. This strategy is similar to the bull call spread, where puts are bought instead of calls. This strategy involves buying 1 OTM put option and selling 1 ITM put option. One should note that both puts should have the same underlying stock and also the same expiry date. A bull put spread is formed for a net cash or net received profit from a rising stock price limited to the net cash received, on the other hand the potential loss is limited and occurs if the price of the stock falls below the strike price of the long put falls.