Reported 5 days ago
A bull put spread is an options trading strategy where an investor sells a higher-strike put option and buys a lower-strike put for the same asset and expiration, aiming to profit from modest price increases while limiting potential losses. This strategy generates income through premiums, especially effective in high implied volatility environments. As traders manage the risk and reward, careful selection of strike prices is essential. Overall, a bull put spread suits moderately bullish market conditions, allowing traders to profit with defined risk.
Source: YAHOO