Bull Put Spread - Components
Buy Out of The Money (OTM) put option while simultaneously selling In the Money (ITM) put option on the same underlying asset with the same expiration month.
Buy OTM Put + Sell ITM Put
Bull Put Spread - Expectation
Up and Stagnant
Bull Put Spread - Risk / Reward
Maximum Profit: Limited
Maximum Loss: Limited
Bull Put Spread - Breakeven Point
Higher Strike - Net credit
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