Bull Put Spread: Earn Premium When Markets Stay Calm or Mildly Bullish

Strategy Concept A Bull Put Spread suits mildly bullish or sideways markets. The objective is to earn premium income while keeping downside risk limited through a protective put. Example & Payoff

was near ₹800 in Oct 2022. • Market View: Mildly Bullish Suitable when price is expected to stay above support, move sideways, or rise slowly. • The Trade (Same Expiry): o Sell 780 PE @ ₹28 o Buy 740 PE @ ₹15 o Net Premium Received: ₹13 • Breakeven: o 780 − 13 = ₹767 • Max Profit: o ₹13, earned upfront • Max Loss: o (780 − 740) − 13 = ₹27, limited • Premium: Receive • Margin: Required • Time Effect: Positive, as time decay works in favor. • Volatility Effect: Low net impact due to hedge. • Pros: Income generation, defined downside, peaceful to hold • Cons: Limited upside, requires margin Summary: Designed to earn from time, not aggressive direction. ________________________________________ 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. AI may have been used for grammatical and sentence-structure refinement. Please consult a SEBI-registered advisor before making any investment decisions.