Bullish BPS

Bull Put Spread Strategy

Collect money upfront on a bullish bet — get paid to be right.

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What is the Bull Put Spread Options Strategy?

A Bull Put Spread is another way to bet on a rising (or stable) stock — but instead of paying money to enter, you actually COLLECT money upfront.

You sell a put option at a higher strike and buy a put at a lower strike. The difference is yours to keep as long as the stock stays above your sold strike at expiry.

Why is it Called "Bull Put Spread"?

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"Bull" = expect price to stay UP. "Put" = using put options. "Spread" = two puts at two different strikes. Earns money when the stock stays above a certain level.

How Does the Bull Put Spread Trade Work?

  1. 1 Step 1 — Pick a stock you think will stay above a certain support level.
  2. 2 Step 2 — Sell a put at or slightly below the current price.
  3. 3 Step 3 — Buy a put at a lower strike. This caps your loss.
  4. 4 Step 4 — Collect the net credit.
  5. 5 Step 5 — If the stock stays above your sold strike at expiry, keep the full credit.

Types of Bull Put Spread Strategies

Most Common

Bull Put Spread (Credit Spread)

Sell the higher-strike put, buy the lower-strike put. Collect a net credit. Profit if stock stays above the sold strike at expiry.

When to Use the Bull Put Spread Strategy?

  • ✓ When you are bullish or neutral — expect the stock to hold above a support level
  • ✓ When options are expensive — you profit by selling that expensive premium
  • ✓ When you want to get paid upfront
  • ✓ Strong stocks at support levels

Profit and Loss of the Bull Put Spread

Before looking at the chart, here is a plain-English summary of what you can make and what you can lose.

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Maximum Profit

The net credit you collected upfront.

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Maximum Loss

Spread width minus credit collected.

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Breakeven Point

Higher (sold) put strike minus credit collected.

Bull Put Spread Payoff Diagram

The chart below shows how profit/loss changes with the underlying price at expiry. Green zone = profit, red zone = loss.

Bull Put Spread Payoff Diagram illustrating profit and loss zones over underlying price0Low priceHigh priceProfitLoss
Illustrative payoff at expiry — not to scale

Bull Put Spread Example Trade

SPY at $480 Expiry: 30 days out
ActionTypeStrikePremium
SellPut$475+$5.00
BuyPut$465-$2.00
Net Credit/Debit +$3.00 collected upfront
Max Profit $3.00 — if SPY stays above $475
Max Loss $7.00 — if SPY falls below $465
Breakevens: $472.00
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SPY stayed at $478. Both puts expired worthless. Kept the full $3.00 credit.

Pros & Cons of the Bull Put Spread

✓ Advantages
  • You get paid immediately
  • Wins even if the stock stays flat
  • Maximum loss is capped
  • High probability of profit
✗ Disadvantages
  • Maximum profit is limited to the credit
  • A sharp fall can result in a loss much larger than your credit
  • Requires margin
  • Risk/reward less favourable in a strong rally

Bull Put Spread Frequently Asked Questions

Test Yourself

Quick Quiz

Answer all questions and check your score.

1 A Bull Put Spread generates:

2 Bull Put Spread profits when:

3 You sell a $475/$465 Bull Put Spread for $3 credit. Maximum loss is:

4 Bull Put Spread is ideal in which environment?

5 The breakeven on a Bull Put Spread is: