STRATEGY

Bull Put Spread

MARKET OPINION

Bullish

MARKET POSITION

Buy a lower strike price put and sell a higher strike price put on the same commodity with the same expiration date

OPTION STRATEGY
DEBIT/CREDIT

Net credit [premium received is greater than premium paid]

PROFIT POTENTIAL

Limited to the net credit

PROFIT POINT

Any futures price above the [higher strike price minus the premium received]; Maximum profit point is any futures price at or above the higher strike price

LOSS POTENTIAL

Limited to the [difference between the strike prices] minus net credit

LOSS POINT

Any futures price below the [higher strike minus net credit]; maximum loss point is any futures price at or below the lower strike price

BREAK-EVEN-POINT

Higher strike price - net debit

MARGIN REQUIRED

Yes

DELTA

[Delta of put bought]-[Delta of put sold]