Bull Put Spread Explained
Bull put spread explained for options traders. Learn setup, max risk, strike selection, assignment risk, and how to scan bullish credit spreads.
Frequently asked questions
What is the maximum loss on a bull put spread?
Maximum loss is the width between the strikes minus the net credit received. That is the defined-risk amount you should size the trade around before entry.
Can I still be assigned on a bull put spread?
Yes. The short put can still be assigned early, especially if it is deep in the money and has little extrinsic value left. The long put limits risk, but you still need a management plan.
Is a bull put spread better than a cash-secured put?
It depends on the goal. A bull put spread uses less capital and has defined risk, while a cash-secured put may fit better if you actually want to own shares at the strike and are comfortable with the larger downside exposure.