How to Sell a Bull Put Spread for Income: A Step-by-Step Guide

The bull put spread is one of the most practical strategies in options trading. It is simple to execute, defined risk from the start, and built to profit when you are moderately bullish or simply believe a stock will not fall much further.

If you've ever wanted to collect premium without the unlimited risk of a naked put, the bull put spread is your answer. You're selling a put at one strike while simultaneously buying a protective put at a lower strike. The credit you receive is yours to keep if the stock stays above your short strike at expiration.

No guesswork about maximum loss. No margin calls at 3 AM. Just a straightforward credit that either works or does not, and you know exactly what you are risking before you click the button.

Let me walk you through exactly how to set this up, from stock selection to order entry to management.