A put credit spread (also called a bull put spread) is an options strategy where you sell a put option and simultaneously buy a lower-strike put option, collecting a net credit. It's one of the most popular income-generating strategies because it profits when the underlying stock stays flat or goes up—and you get paid upfront.
In this guide, I'll explain put credit spreads using a simple insurance analogy, walk through real examples with actual numbers, and show you when and why traders use this strategy.
Related To: Bull Put Spread
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