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BULL PUT Spread

BULL PUT Spread. Strategy Name: BULL PUT SPREAD Direction: Bullish Max. Risk: Capped Type: Income Volatility: N/A Max. Reward: Capped Proficiency: Intermediate. Legs: Buy lower Strike (SP L ) Puts Sell higher Strike (SP H ) Puts Entry:

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BULL PUT Spread

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  1. BULL PUT Spread

  2. Strategy Name:BULL PUT SPREAD Direction:BullishMax. Risk:Capped Type:Income Volatility: N/A Max. Reward: Capped Proficiency: Intermediate Legs: Buy lower Strike (SPL) Puts Sell higher Strike (SPH) Puts Entry: Try to ensure that the trend is upward or range bound.

  3. Risk Profile: Net Credit: higher strike premium - lower strike premium Max. Risk: (Higher SP – Lower SP) – Net Credit Max. Reward: Net Credit BEP: Higher SP - Net Credit Investment: Span Margin ROI: Profit/Investment

  4. Exit: With this strategy, you can simply unravel the spread by buying back the puts you sold and selling the puts you bought in the first place.

  5. Example: Month Long/Short Option Call/Future/Put Price Qty Oct Long 5500 Put 20 1000 Oct Short 5800 Put 80 1000

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