> For the complete documentation index, see [llms.txt](https://guide.laevitas.ch/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.laevitas.ch/option-strategies/bull-put-spread.md).

# Bull Put Spread

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Also called Short Put Vertical, a Bull Put Spread is the simultaneous sale of a higher strike price Put and purchase of a lower strike price Put, with the same expiration. These are usually done for a credit.
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**Payoff Diagram:**

![](/files/EIvixpmEhqi46AFzHv8T)

**Direction Assumption:** Bullish

**Maximum Profit:** Limited to premium received. \
Maximum profit is realized when the underlying moves to or above the Short Put strike price on expiration.

**Maximum Loss:** Limited to the difference between the two strike prices, minus the premium paid. Maximum profit is realized when the underlying moves to or above the Long Put strike price on expiration.  

**Breakeven Price:** Equal to the Long Call Strike Price + Premium paid

**Theta:** Passage of Time -> Positive Effect\
The net effect of time decay is positive. It will erode the value of the Short Put in a bigger extent than the Long Put.

**Volatility:** Negligible effect.