The Bull Put Spread is a versatile options strategy that can be used to generate income and limit downside risk. It is a popular strategy among traders who are bullish on a stock but are concerned about a potential decline in price.
What is a Bull Put Spread?
A Bull Put Spread is a strategy that involves selling a put option with a higher strike price and buying a put option with a lower strike price. Both options have the same underlying asset and expiration date.
**Just sold Bull Put Spread by selling a put option with a strike price of $37.50 and buying a put option with a strike price of $36, expiring on January 26, 2024.
Stop Loss
Set a stop-loss order at 3 times the credit received, with a maximum 10% of your capital as the order amount.
This strategy will generate a profit if the stock price remains above $37.50 at expiration.