Bullish strategy · Intermediate
Market outlook Moderately bullish
Short higher-strike put with protective lower-strike put.
Each row reprices every live leg independently. Entry premiums stay fixed.
| Underlying price | Move | Profit / loss |
|---|
Dollar-scaled for each leg's quantity, multiplier, expiry, and IV. Theta is per day; vega and rho are per one percentage-point move.
| Leg | Delta | Theta/day | Vega |
|---|
Strike configurations
Place the long put well below the short put for a larger credit but a bigger maximum loss.
Key difference: More premium collected upfront in exchange for a larger worst-case loss if the stock drops through both strikes.
Best for: Traders confident the stock holds a wide support level.
Sell a put strike well below the current price with a tight protective long put just under it.
Key difference: Small credit, but a high probability of expiring worthless (max profit) since both strikes are unlikely to be reached.
Best for: High-probability income trades with minimal directional conviction.
Common questions
The long put caps the maximum loss and reduces the margin required versus a naked cash-secured put, in exchange for a smaller net credit.
The stock stays above the short put strike through expiration, both puts expire worthless, and you keep the full net credit received at entry.
Early assignment on the short put can happen if it moves deep in-the-money, especially near a dividend date, though it's uncommon before expiration for typical strike spacing.
Margin is generally limited to the width between the two strikes minus the net credit received, since the long put defines and caps the maximum loss.
Deep dive
Detailed explanations, management techniques, and real-world scenarios
Scenario Lab
Explore how this position changes before expiration
Quick reference
Quick answers about when to use, capital needed, and key risks
Profit and loss
Compare max profit, max loss and break-even across common strategies
Custom calculator
Combine calls, puts, stock, quantities and different expirations
Risk sensitivity
Inspect Delta, Gamma, Theta, Vega and Rho
Same market view
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Same experience level
Structures with a comparable learning curve to the bull put spread
Head-to-head
Structure, cost, and breakeven differences compared side by side
Head-to-head
Structure, cost, and breakeven differences compared side by side
This calculator uses exact intrinsic value at a leg’s expiration and Black–Scholes theoretical value while that leg remains open. Position Greeks use the same visible legs and model assumptions. Results exclude fees, tax, liquidity, margin, early exercise and assignment behavior. Educational illustration only—not financial advice.