Bull Put Spread Calculator
bullishA bull put spread is a vertical credit spread: you sell a higher-strike put and buy a lower-strike put. You collect a net credit and profit if the stock stays above the short strike.
Max Profit
Net credit received × 100
Max Loss
(Width of strikes − Net credit) × 100
Break Even
Short strike − Net credit
When to Use a Bull Put Spread
- You are neutral to mildly bullish — you don't expect the stock to fall much
- You want to sell premium and collect theta decay
- Implied volatility is elevated, making credits richer
- You want defined risk compared to a naked short put
Risks
- You lose if the stock drops below the short strike minus credit
- Max loss is larger than max profit (width − credit)
- Early assignment risk on the short put if it goes deep ITM
How a Bull Put Spread Works
Sell a put at strike A and buy a put at strike B (B < A), same expiration. You collect a net credit. If the stock stays above strike A at expiry, both expire worthless and you keep the credit.
Example
AAPL at $195. Sell the $195 put for $3.40, buy the $190 put for $2.00. Net credit: $1.40 ($140).
Key Takeaway
Bull put spreads are the credit-spread version of a bullish bet. You profit from time decay and a stable or rising stock. The tradeoff: max loss exceeds max profit, but probability of profit is typically higher.