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A two-leg options strategy that expresses a moderately bullish (or at least "not bearish") view by collecting a net credit upfront, with both maximum profit and maximum loss known before you place the trade.

Also called a short put spread or a bull put credit spread, it expresses the same bullish view as a Bull Call Spread, but is built entirely from puts and collects money upfront instead of paying it.

A Bull Put Spread combines selling one put at a higher strike with buying another put at a lower strike, same expiry. The premium collected from the short put is partially offset by the cost of the long put, leaving you with a net credit — money in your account the moment you place the trade. You keep the full credit if the underlying stays above your short strike through expiry.

The short put is what generates your income — you're getting paid to agree to a worst-case buy price below the current level. The long put exists purely to cap your risk if the underlying falls much further than expected; without it, this would just be a naked short put, with a much larger (though still technically defined, at zero) potential loss.

You collect the net credit upfront, and it's yours to keep in full as long as the underlying stays above the short strike at expiry. Splitting the price axis into three zones:

1. Above the short put strike — maximum profit, fully realized and flat. Both puts expire worthless, and you keep the entire credit.
2. Between the short and long put strikes — profit shrinks as the underlying falls, moving from max profit toward breakeven and then toward loss.
3. Below the long put strike — maximum loss, fully capped. The spread reaches its full width against you, offset only by the credit you originally collected.

A Bull Put Spread fits a view that's bullish, or simply not bearish — you don't need a big rally, just for the underlying to hold above your short strike. It's a common way to collect premium in a market you expect to grind sideways-to-up, and is often chosen over a Bull Call Spread specifically because it's a credit strategy: you're paid upfront rather than paying to enter, which some traders find more capital-efficient, though the risk/reward math ultimately comes from the strikes chosen either way.

Suppose Nifty is trading at 24,000 with a weekly expiry coming up, and lot size is 65. You're moderately bullish, or at least don't expect a fall.

1. Confirm the setup. You expect Nifty to hold above roughly 23,800 through expiry.
2. Sell 1 put at the 23,800 strike for a premium of 85.
3. Buy 1 put at the 23,600 strike for 45, to cap the downside risk.
4. Calculate the net credit: 85 − 45 = 40 points, or ₹2,600 at this lot size. This is credited to your account immediately, and is also your maximum possible profit.
5. Calculate the max loss: the spread is 200 points wide, so max loss is (200 − 40) × 65 = ₹10,400.
6. Calculate the breakeven: 23,800 − 40 = 23,760.
7. Hold the position while Nifty stays above your short strike.
8. See how it resolves at expiry:
   • Nifty finishes at or above 23,800 → both puts expire worthless, you keep the full ₹2,600 credit.
   • Nifty finishes at 23,760 → you exactly break even.
   • Nifty finishes at or below 23,600 → you lose the full ₹10,400, no matter how much further it falls.

Quick reference for the same trade:

Based on the worked example above. Move the cursor over the chart to see profit/loss at any price.

• Max loss can exceed max profit. In this example, the most you can lose (₹10,400) is roughly four times the most you can gain (₹2,600) — check this ratio for your own strikes before assuming a high win rate makes the trade favorable overall.
• A credit received upfront isn't the same as profit yet. The credit can still be given back, in full or in part, if the underlying falls before expiry.
• Index options on NSE are typically European-style and cash-settled — no early-assignment risk on the short leg, unlike American-style stock options.
• Liquidity at the further strike matters. The long (protective) put is further from the money and can have a wider bid-ask spread, especially outside the most liquid expiries.