Bull Put Spread

Low cost, decent profits if the price stays at a certain level or rises

The Bull Put Spread is a strategy that helps you to make a bet on a local price rise and earn profits if the price doesn’t fall.

The Bull Put Spread is an optimal strategy when the price rises or does not change during the period of holding. The profit zone for this strategy looks like a profit zone for the Bull Call Spread. The key difference is that with the Bull Put Spread you are immediately in profits after purchasing the strategy and don’t need to wait for a price rise.

Buying one Bull Put Spread is equal to selling a ATM put while at the same time buying a OTM put with a lower strike price.

Bull Put Spread is an inversion strategy. This means that the strategy includes selling (writing) of options, so they can't be exercised before expiry.