What is a bull put spread?
Updated 6 June 2026 · by Theo Chen
A bull put spread — also called a put credit spread — is a bullish, defined-risk options trade. You sell a put and buy a lower-strike put with the same expiration, collecting a net credit. You keep the credit if the stock stays above your short strike; the long put caps your loss if it falls.
Want the exact numbers for your strikes? Enter both puts and the premiums and the calculator returns the net credit, max profit, max loss, breakeven and return on risk.
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Two puts on the same stock and expiration, both usually below the current price:
- Sell the higher-strike put (your short put). This is where most of the premium comes from, and the strike you want the stock to stay above.
- Buy the lower-strike put (your long put). This costs a little of the premium back but caps your loss, turning a naked put into a defined-risk trade.
The difference between the two premiums is your net credit — the most the trade can make.
The payoff: max profit, max loss and breakeven
- Max profit = the net credit, kept if the stock is at or above the short put strike at expiration.
- Max loss = the strike width minus the net credit, reached if the stock closes below the long put strike.
- Breakeven = the short put strike minus the net credit. Above it the trade is profitable at expiration.
A worked example
A stock trades at $100. You sell the $95 put for $2.00 and buy the $90 put for $0.80, collecting a net credit of $1.20 ($120). The strikes are $5 apart.
- Max profit: $120 — kept if the stock is above $95 at expiration.
- Max loss: ($5 − $1.20) × 100 = $380, if the stock closes below $90.
- Breakeven: $93.80 — the stock can fall about 6% and you still break even.
- Return on risk: $120 / $380 = about 32% if it works.
Buy the $90 put (green) and sell the $95 put (red). You keep the $120 credit above $95 and your loss is capped at $380 below $90; breakeven is $93.80.
Bull put spread vs cash-secured put
Both are bullish put-selling trades, but they trade off risk against intent. A cash-secured put sets aside the full cash to buy the shares and carries the stock's entire downside — which is fine if you actually want to own it. A bull put spread spends part of the premium on a long put to cap that downside, needs far less capital, but also caps the profit and gives up the shares. Use the spread when you only want the income with a known maximum loss; use the cash-secured put when assignment is welcome.
The bottom line
A bull put spread collects a credit for betting a stock stays above your short strike, and the long put below it caps the loss - you trade away the open-ended downside of a naked put for far less capital and a smaller maximum profit.
Frequently asked questions
What is a bull put spread?
A bull put spread — also called a put credit spread — is a two-leg options trade where you sell a put and buy a lower-strike put with the same expiration, collecting a net credit. It is a bullish-to-neutral trade with defined risk: you keep the credit if the stock stays above your short put strike, and the long put caps your loss if it falls.
Is a bull put spread bullish or bearish?
Bullish to neutral. It profits if the stock rises, stays flat or even drifts down slightly — as long as it finishes above the strike of the put you sold. It does not need a big rally; it just needs the price to hold above your short strike by expiration, which is why it is popular with sellers who expect a stock to stay supported.
How do you make money on a bull put spread?
You collect the net credit up front. If the stock is above your short put strike at expiration, both puts expire worthless and you keep the entire credit — your maximum profit. The trade benefits from time decay and a stable or rising stock, so it wins on the passage of time rather than needing a strong directional move.
What is the max loss on a bull put spread?
The maximum loss is the width between the two strikes minus the net credit, multiplied by 100. If the strikes are $5 apart and you collected $1.20, the most you can lose is ($5 − $1.20) × 100 = $380, reached if the stock closes below your long put strike. That capped, known loss is what makes it a defined-risk trade.
Bull put spread vs cash-secured put — which is better?
A cash-secured put has unlimited-style downside to zero but lets you buy the shares if assigned; a bull put spread caps the loss with a long put but also caps the profit and gives up the shares. The spread needs far less capital. Choose the cash-secured put if you genuinely want to own the stock, and the spread if you only want the premium with defined risk.
Related questions
- What is a call spread, and how is it different?
- How does an iron condor sell both sides at once?
- How do I choose a strike price for a credit spread?
- Can you lose money selling cash-secured puts?
Related tools and guides
Run your strikes through the Bull Put Spread Calculator, sell premium on both sides with the Iron Condor Calculator, or compare with being assigned the shares in the Cash-Secured Put Calculator. Map any multi-leg position in the Payoff Diagram Builder. For the call-based vertical, see What is a Call Spread?
Educational explainer only — not financial advice. Examples are illustrative and exclude commissions, early assignment and dividends. Confirm the mechanics and size positions to your own risk tolerance.