Bull Put Spread Calculator
A bull put spread (also called a credit put spread) is a bullish to neutral strategy where you sell a put at a higher strike and buy a put at a lower strike, collecting a net credit.
This strategy profits when the stock stays above the short put strike. Like its call counterpart (bear call spread), it benefits from time decay and falling volatility, but expresses a bullish rather than bearish view.
Bull put spreads are popular for generating income on stocks you're neutral to bullish on, with defined risk if the stock drops.
Hypothetical example: SPY at $585. Premiums and IVs are illustrative inputs, not current quotes. Dates roll forward for the demo. Results exclude fees and assignment effects.
| Action | Type | Strike | Exp | Premium | Qty | Delta | Gamma | Theta | Vega |
|---|---|---|---|---|---|---|---|---|---|
| sell | put | $580 | Oct 16 | $6.80 | 1 | 40.2 | -1.12 | 16.00 | -70.07 |
| buy | put | $570 | Oct 16 | $3.90 | 1 | -29.3 | 1.00 | -14.72 | 62.32 |
| Net | +10.9 | -0.12 | +1.27 | -7.75 | |||||
When to Use
- You expect the stock to stay flat or rise
- You want to collect premium with limited risk
- There's a support level you expect to hold
- Implied volatility is elevated
Risk Profile
At expiration, before fees. Arithmetic examples below use their stated inputs, separately from the interactive model above.
Sell $100 put, buy $95 put for $1.75 net credit
Net credit received = $1.75
$1.75 × 100 = $175 per contract
Stock closes below $95 at expiration
($100 - $95) - $1.75 = $3.25
$3.25 × 100 = $325 per contract
Find the stock price where P/L = $0
$100 - $1.75 = $98.25
Stock must stay above $98.25 to profit
Bull Put Spread vs Bull Call Spread
Both are bullish strategies with similar risk/reward profiles. A bull put spread is a credit strategy (you collect premium upfront), while a bull call spread is a debit strategy (you pay upfront). Bull put spreads benefit from time decay, making them better in high IV environments. Bull call spreads may outperform for strongly bullish moves.
How to Build a Bull Put Spread
- 1Enter your stock ticker and select an expiration date
- 2Sell a put at a strike you expect the stock to stay above
- 3Buy a put at a lower strike to define your maximum loss
- 4Review the credit received and risk/reward ratio
- 5Monitor theta decay working in your favor
Frequently Asked Questions
Both are bullish, but bull put spreads collect a credit upfront while bull call spreads pay a debit. Bull put spreads benefit more from time decay and are better in high IV environments. Bull call spreads may have higher profit potential for larger moves.
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