• Jerremy Alexander Newsome

The 5 Points of a Bull Put Spread

The 5 Points of a Bull Put Spread

Hey, Traders from around the world! I trust you are doing sensational. What a beautiful trading season it has been. In this article, I'm covering a semi-advanced option strategy. Let's get into it.

What: A bull put spread is a non-directional strategy involving two option legs: a put that you purchase and one that you sell. What I like about bull put spreads is it's a limited return, limited risk strategy. It usually requires less margin than selling a naked put and can be done as an ITM or OTM strategy.

How: If you are bullish to non-directional on a trade and perhaps the stock you are charting is reaching a support and pretty much just trading sideways. An example: SPY has been on a nice bullish run and is being supported by the short term and long term moving averages and possibly some bullish gaps and candles, too. You sell to open the 202 put and then simultaneously buy to open the 201 p