The major difference between the two is a bull spread created with puts done at a credit or with income generated for a trader's account. When created with call options, a bull spread would result in an account debit or cost to the trader. A bull spread, credit or debit, may be used with an extremely bullish, slightly bullish, or even neutral-to-bull...
A bull put spread consists of one short put with a higher strike price and one long put with a lower strike price. Both puts have the same underlying stock and the same expiration date. A bull put spread is established for a net credit (or net amount received) and profits from either ...
As a result, we create a longer date Bull Put Credit Spread with additional credit from longertime valueand wider strike prices. Then we can wait for the SHOP stock price to bounce back in a bullish manner and profit from the new trade. Now you know how Bull Put Spreads work, you can...
A bull put spread involves writing or short selling a put option, and simultaneously purchasing another put option (on the same underlying asset) with the same expiration date but a lower strike price. A bull put spread is one of the four basic types ofvertical spreads- the other three bein...
Bull Put Spread As the name suggests, this strategy is also used when the outlook on the market is bullish, and it uses put options. In this, a trader shorts a put with a higher strike price and buys one put with At the Money (ATM) lower strike price. Here also, both the puts ha...
option with the same expiration date but a higher strike price. It is one of the four basic types of price spreads or “vertical” spreads, which involve the concurrent purchase and sale of two puts or calls with the same expiration but different strike prices. In a bull call spread, the...
Spreadforanetdebit. Themargin levels are different but close enough to not be discussed here. Aside from being a bullish strategy, the Bull Put Spread is also considered “short volatility,” so in many cases a profit can be realized with little movement in the underlying. ...
that sale.2Both options will have the same expiration date. Since puts lose value as the underlying increases, both options would expire worthless if the underlying price finishes higher than the highest strike. Therefore, the maximum profit would be the premium received from writing the spread. ...
($400 for each spread you set up). If Starbucks closes above $85 at expiration, you could close the spread for $10 per share ($1,000) and earn a profit of $600 per spread for a more than 100% gain. However, the trade would lose money if shares close at or below $79 per ...
Bull Put Spread: when the price of the underlying stock is greater than or equal to the strike price of the short put Payout% - Bull Call & Bear Put = (spread differential - net debit) / net debit Break Even Probability - For Bull Calls and Bull Puts, the probability of the underl...