Strategies
Bull Put Spread
A clearly bullish credit-spread strategy with defined risk and a very clean P/L profile.
Description
What the strategy consists of
A bull put spread consists of one short put and one lower long put in the same expiration. That creates a net credit at entry.
The strategy is bullish: it performs best when the market stays above the short-put strike.
On the S&P 500, a 30 to 45 DTE window has proven particularly interesting.
P/L Diagram
Schematic at expiration
Backtests
SPX over 5 years
The Option Omega backtest shows a remarkably stable curve with low drawdown.
