Options Glossary, Bull Put Spread, Bull,Put,Spread
Uncovered Options Trading System
101 trades were issued in 2017-20 only 4 red
Options Glossary - Most Used Terms
Bull Put Spread
A strategy in which a trader sells a higher strike put and buys a lower strike put to create a trade with limited profit and limited risk. A rise in the price of the underlying increases the value of the spread. Net credit transaction; Maximum loss = difference between strike prices less credit; Maximum gain = credit; requires margin.
See Also:
Bull: An investor who believes that a market is rising or is expected to rise.
Put: An option contract that gives the holder the right to sell the underlying security at a specified price for a certain fixed period of time.
Spread: A trade in which two related contracts/stocks/bonds/options are traded to exploit the relative difference in price change between the two. A trading strategy in which a trader offsets the purchase of one trading unit against another.
