Bull Put Spread (Credit Put Spread)
Sell a higher OTM Put and buy a lower protective Put to collect upfront credit with strictly defined maximum risk.
Interactive Payoff Curve & Greeks Simulation
Visualize the theoretical profit & loss at expiry vs T+0 immediate day curves. Drag the simulation slider to stress-test your trade.
Option Payoff Curve & Greeks
Net Option Greeks (Sensitivity Profile)
Values per 1 Lot standard unitMulti-Leg Position Structure (2 Legs)
| Action | Instrument / Strike | Type | Expiry | Approx Delta | Est. Premium | Qty Ratio |
|---|---|---|---|---|---|---|
| SELL | 24,300 PE (30 Delta) | PUT | Monthly Expiry | -0.30 | ₹135 | 1x |
| BUY | 24,000 PE (15 Delta Protective) | PUT | Monthly Expiry | -0.15 | ₹45 | 1x |
How the Structure Works
Because of positive Theta (+θ), time works entirely in your favor. You profit if the underlying rises, trades sideways, or even falls slightly without breaching your short strike.
A Bull Put Spread (Credit Put Spread) is the preferred strategy of institutional options sellers. By selling an OTM Put below strong support and simultaneously buying a cheaper lower strike Put for crash protection, you collect a net cash credit. As long as the market stays above your short strike, both options expire worthless, leaving you with 100% of the credit.
Institutional Strike Selection Rules
Phased Execution Blueprint
Follow this structured sequence to eliminate emotional hesitation during order entry, lifecycle management, and final exit.
Support Verification & IV Scan
Verify Nifty is trading above rising 20/50 EMA with IV Percentile > 50.
Basket Order Credit Execution
Execute long hedge first to unlock SEBI margin discount, then sell the short put.
Interactive Margin & Position Size Calculator
Calculate exact lot sizing based on the 1-2% risk rule to preserve capital against Black Swan events.
Options Position Size & Max Risk Calculator
Total net liquid equity in your brokerage account
Recommended: 1.0% - 2.0% for disciplined longevity
Wing width max loss or defined mental/system SL
Rigorous Risk Rules & Adjustment Protocols
Non-negotiable parameters for stop-loss triggers, portfolio caps, and firefighting adjustments when market tests your strikes.
- Roll Down: Roll the spread to a lower strike and further expiry for a net credit.
SEBI margin requirement is only approx ₹25,000 - ₹35,000 per lot.
NIFTY 24300/24000 Bull Put Spread Trade Walkthrough
Nifty tested 24,300 support with positive breadth.
Sold 24,300 PE @ ₹135 / Bought 24,000 PE @ ₹45 (Net Credit = ₹90 = ₹2,250 on 25 qty)
- Nifty stayed flat around 24,550; captured 100% theta decay.
Common Mistakes to Avoid
Why it happens: Hoping for a last-minute reversal.
Solution: Enforce the 2x credit stop loss.
Institutional Pro Tips
Bull Put Spread (Credit Put Spread) FAQs
What is the advantage of Bull Put Spread over Bull Call Spread?
Bull Put Spread is a credit strategy with positive theta. You win even if the market goes sideways or drifts slightly lower, whereas Bull Call Spread requires the market to move up.
Alternative & Complementary Strategies
Buy an ATM Call and simultaneously sell a higher OTM Call to reduce cost, cap risk, and neutralize theta decay.
Sell an OTM Call Spread and an OTM Put Spread simultaneously to collect double premium in a range-bound market with strictly defined risk.
Sell a Put option to collect upfront premium income, willing to buy the underlying stock at a discount if assigned.