๐ Put Credit Spreads (Bull Put Spreads) โ Quick Guide
A bullish, defined-risk strategy designed to benefit from theta decay while keeping directional exposure relatively low.
๐ป Sell a low-delta OTM put
๐ก๏ธ Buy a lower-strike put for protection
๐ต Collect a net credit/premium
โณ Positive Theta โ time decay works in your favor
๐ฏ Keep the short strike below key support / expected move
๐ฐ Max Profit = Credit/Premium Received
โ ๏ธ Max Risk = Spread Width โ Credit/Premium Received
EXAMPLE ON COMMENT BELOW ๐งต๐
The goal isnโt necessarily for the market to rallyโ the stock price simply needs to stay above your short strike at expiration to realize the full premium.
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