Bull Put Spread

This video is your complete guide to adjusting risk-defined strategies, such as credit spreads, iron condors, and calendar spreads.

Traders with small accounts should use risk-defined options trading strategies and avoid strategies with undefined risk.

It is important to have an options portfolio with a combination of multiple strategy types each month. This enables you to spread positions out and increases the probability of having profitable trades in any market condition.

This the first put spread adjustment you should make to reduce your overall risk in the trade.

A custom naked call is a bearish options strategy that combines two strategies, which provides some protection if the stock moves higher. Think of the strategy as entering an iron condor without the long call.

If you are bullish and want to trade an option spread strategy, implied volatility is the main factor when deciding between bull call debit spreads and bull put credit spreads.

A bull put credit spread is a multi-leg, risk-defined, bullish strategy with limited profit potential. A bull put spread is entered when the seller believes the price of the underlying asset will be above the short put option’s strike price on or before the expiration date.