Bull put spread (credit)
BullishLimited profitLimited loss
Sell a put, buy a lower put: defined-risk credit if price holds up.
Payoff at expiry — live BTC example
Net credit
$130.48
Max profit
$130.48
Max loss
$1,070
Breakeven
73,470
Example legs (0.4 DTE front)
- Sell 73,600 put
- Buy 72,400 put
Entry greeks (per 1 BTC notional): Δ 0.141 · Γ -0.0821 per 1% · vega $-3.50/pt · theta $215.73/day
How it works
The short put collects premium; the long put below caps the loss at the strike width minus the credit.
When to use it
You expect a level to hold and want short-put economics with a hard floor — the standard defined-risk bullish income trade.
Risks & management
Risk/reward is usually several-to-one against; a string of winners can be undone by one full loser. Take profits early and avoid strikes just below support that fails.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.