The Bull Put Spread: Structure, Risk and Reward
Debit and Credit VerticalsLearn how a bull put spread is constructed, what happens at expiration under different scenarios, and how maximum gain, loss and break-even are calculated.
0:00 Setting Up a Bull Put Spread
0:29 When a Bull Put Spread Isn't the Right Fit
1:02 The Neutral-to-Moderately-Bullish Forecast
1:40 Choosing Your Short Put Strike
2:03 Selling High, Buying Low for a Net Credit
2:49 Expiration: Keeping the Full Credit
3:12 Obligations on the Short Put
3:36 Defined Maximum Gain and Loss
4:24 Calculating the Break-Even Point
5:08 Loss Example When the Stock Drops
5:40 Expiration Scenarios
Register to view the complete Understanding Credit Spreads: Mechanics and Applications webinar: https://bit.ly/4vqr8dU.
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