The bull put spread, leg by leg, with two real trades
The hedg3 Team
A bull put spread is two puts on one expiry: one sold, and one bought at a lower strike to cap the loss. It opens for a credit and keeps all of it when the stock finishes above the sold strike. The gap between the two strikes is the wing: $95 to $90 is $5 a share, $500 on 100 shares.
Bull put spread
CreditSpread AgentThe numbers at expiry
- Max profit: $100, the credit, with XYZ above $95.
- Max loss: $400 below $90: the $500 wing less the $100 credit.
- Breakeven: $94: the 95 strike less the $1 credit.
- Collateral: $400 held at entry.
Why the max loss is $400
Two numbers set it: the credit and the wing. The 95 put brings in $160 and the 90 put costs $60, so the spread opens for a $100 credit. Below $90 the 95 put is assigned and the 90 put is exercised: 100 shares bought at $95 and sold at $90, a $500 loss, the full wing. The $100 credit is kept.
| Sell the 95 put | +$160 |
| Buy the 90 put | −$60 |
| Net credit | +$100 |
| 95 put assigned: buy 100 XYZ at $95 | −$9,500 |
| 90 put exercised: sell 100 XYZ at $90 | +$9,000 |
| Credit kept from the open | +$100 |
| Max loss | −$400 |
Where assignment happens
Between $90 and $95 the 95 put is assigned and the 90 put expires: you own 100 shares at $95, $9,500. Below $90 both puts are exercised, the shares net out, and the loss is the $400 maximum. Closing before expiry avoids the zone.
Winner: MARA, Sep 3 to Sep 8
| Leg | Contract | Price |
|---|---|---|
| Buy | MARA 9 put | $0.075 |
| Sell | MARA 9.5 put | $0.125 |
- Opened
- Sep 3, 2026, 1:00 PM ET · MARA $11.435
- Net credit
- $0.05 · $5 received
- Target
- Buy back at $0.025 · +$2.50
- Stop
- $0.10
- Closed
- Sep 8, 2026, 11:42 AM ET · MARA $11.83
- How
- Target hit
MARA was at $11.435, $1.935 above the 9.5 sold put, when the spread opened for a $0.05 credit. MARA rose to $11.83, and the target bought the spread back at $0.025 on Sep 8: +$2.50 on $45 at risk.
Loser: NFLX, Sep 4 to Sep 8
| Leg | Contract | Price |
|---|---|---|
| Buy | NFLX 80 put | $2.18 |
| Sell | NFLX 81 put | $2.785 |
- Opened
- Sep 4, 2026, 12:00 PM ET · NFLX $79.15
- Net credit
- $0.605 · $60.50 received
- Target
- Buy back at $0.3025 · +$30.25
- Stop
- $1.00
- Closed
- Sep 8, 2026, 10:50 AM ET · NFLX $76.71
- How
- Price stop
NFLX was at $79.15, already under both strikes, when the spread opened for $0.605 of its $1 width. NFLX fell to $76.71, the spread reached its full $1 width, and the price stop closed it on Sep 8: −$39.50, the whole max loss.
Every trade, on the record
The two trades above are the Spread Agent's most recent settled winner and loser. Every bull put spread it closes, winners and losers, is on the public track record.
The full strategy page covers the Greeks and when it is used: bull put spread.
