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Bull Put Spread
High probability, limited gain, controlled risk.
Objective
Generate immediate income with limited risk .
Principle
Sell a Put + buy a Put at a lower price to protect yourself.
“I win if the stock doesn't fall too much. The loss is capped.”
Scenario: 1
Stable or rising market → maximum gain = premium collected
Scenario: 2
Moderate decrease → reduced or zero gain
Scenario: 3
Sharp decline → limited (capped) loss
Summary
Outlook : Bullish / Neutral
Maximum payout : Bonus
Maximum loss : Limited
Dead end : Strike sold – premium
Sell Put 100 (6.00) / Buy Put 95 (3.50)
→ Credit: 2.50
→ Maximum gain: +2.50 | Maximum loss: -2.50
Indicative projection of your
investment strategy
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