Currently, there is no tutorial available. Please check back later.
Bull Put Spreads for Beginners: Options Learning Center
Description
The bull put spread is a short put option strategy where you expect the underlying security to increase in value. The bull put option strategy involves selling a put option around the price of the underlying security and buying a put option at a lower strike price.
Maximum profit is the difference between the premium received for the short put and the premium paid for the long put (Net Credit). Maximum loss is the difference in strike values minus the Net Credit, which will occur if the underlying security price is below the lower strike price at expiration. The bull put strategy succeeds if the security price is above breakeven (higher strike - Net Credit). Maximum profit is achieved if the security price is above the higher strike price at expiration.
DISCLAIMER REGARDING INVESTMENT DECISIONS AND TRADING
Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Any trading in securities or other investments involves a risk of substantial losses. The practice of “Day Trading” involves particularly high risks and can cause you to lose substantial sums of money. Before undertaking any trading program, you should consult a qualified financial professional. Please consider carefully whether such trading is suitable for you in light of your financial condition and ability to bear financial risks. Under no circumstances shall we be liable for any loss or damage you or anyone else incurs as a result of any trading or investment activity that you or anyone else engages in based on any information or material you receive through Barchart.com or our Services.
