Bull put credit spreads are a type of options trading strategy that involves selling a put option on a stock with a low strike price and buying a put option on the same stock with a higher strike price. The goal of this strategy is to make a profit when the underlying stock's price increases, while limiting the potential loss to the difference in the strike prices of the two put options, plus the initial credit received from the trade. Overall, bull put credit spreads can be a useful strategy for investors who want to take a bullish position on a stock, but who want to limit their potential loss in the event that the stock does not perform as expected.
Max Profit: Maximum profit is limited to the difference between the short put and long put prices.
Max Loss: Max loss is limited to the difference in strike values minus the credit.