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Manishtmgg
2023-05-20
Great ariticle, would you like to share it?
@OptionsTutor:Put bull spreads and application introduction
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Selling a put allows you to collect a premium that you can keep if the underlying futures contract finishes at or above the strike price.A trader believes that the market will have a moderate rise before the options expire. If the underlying market was trading at 100, we can sell the 110-105 put spread. This would entail selling the 110 puts and buying the 105 puts which","listText":"A bull spread consists of a buy leg and a sell leg of different strikes for the same expiration and same underlying contract.This strategy will pay off in a rising market, also known as a bull market, that is why it is referred to as a bull spread.Bull spreads can be constructed from either going long a call spread or going short a put spread.Put Bull SpreadsBull spreads can be constructed from selling a put spread. 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