A bull put spread is a bullish credit spread: you sell a put at a higher strike and buy a put at a lower strike on the same underlying with the same expiration. You collect a net credit up front. The maximum profit is that credit, earned if the stock closes at or above the higher strike at expiration. The maximum loss is the difference between the strikes minus the credit. A bull put spread is a limited profit, limited risk strategy.
In this video we will be discussing:
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What Bull Put Spread is
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How it works
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How it is calculated using Marketxls
Use the Bull Put Spread Excel template to model the payoff.
Read the Bull Put Spread Excel walkthrough for a worked example.