STRATEGY | Bull Put Spread |
MARKET OPINION | Bullish |
MARKET POSITION | Buy a lower strike price put and sell a higher strike price put on the same commodity with the same expiration date |
OPTION STRATEGY | Net credit [premium received is greater than premium paid] |
PROFIT POTENTIAL | Limited to the net credit |
PROFIT POINT | Any futures price above the [higher strike price minus the premium received]; Maximum profit point is any futures price at or above the higher strike price |
LOSS POTENTIAL | Limited to the [difference between the strike prices] minus net credit |
LOSS POINT | Any futures price below the [higher strike minus net credit]; maximum loss point is any futures price at or below the lower strike price |
BREAK-EVEN-POINT | Higher strike price - net debit |
MARGIN REQUIRED | Yes |
DELTA | [Delta of put bought]-[Delta of put sold] |
