---
title: "Bull Put Spread (Credit) — options strategy"
type: "options-strategy"
topic: "Options strategies (Indian markets)"
category: "Income"
outlook: "Bullish"
complexity: "intermediate"
risk: "defined"
slug: "bull-put-spread"
url: "https://learn-derivatives.tapetide.com/strategies/bull-put-spread"
markdown_url: "https://learn-derivatives.tapetide.com/strategies/bull-put-spread.md"
source: "DeltaDesk by Tapetide"
---

# Bull Put Spread (Credit)

> **In plain English:** Get paid now for betting a price will NOT fall much. You sell a put and buy a lower one for protection. You keep the cash if the price stays up; your loss is capped if it falls.

**Category:** Income · **Market view:** Bullish · **Complexity:** intermediate · **Risk:** Defined

## Structure

- Sell ATM-1 strike put
- Buy ATM-4 strikes put

## Summary

Sell a put and buy a lower put — collect a credit, profit if the price stays up.

## When to use it

Neutral-to-bullish, want positive theta with defined risk. Good when IV is high.

## Profit & loss

- **Max profit:** The net credit received.
- **Max loss:** Limited to (spread width − net credit).

## Net Greeks profile

Positive theta, negative vega, positive delta.

## Margin

Margin-intensive (you sell options).

## Common mistakes

- Selling spreads when IV is low (poor credit).
- Ignoring assignment risk near expiry.

## India example

Sell 1-OTM NIFTY put, buy a further-OTM put when IV rank > 50%.

---

**Build it live in the [DeltaDesk Strategy Lab](https://learn-derivatives.tapetide.com/tools/strategy-lab)** — tune strikes and see payoff + net Greeks update instantly.

*Educational content only — nothing here is investment advice. Derivatives carry significant risk of loss. Tapetide is not a SEBI-registered research analyst or investment adviser.*