A Bull Put Spread is a strategy designed for investors with a moderately bullish outlook on the market. This strategy involves selling an "In-the-Money Put Option" (higher strike price) and buying an "Out-of-the-Money Put Option" (lower strike price). Both put options must share the same underlying asset and expiration date .

The primary purpose of this strategy is to limit the downside risk of the put sold by purchasing a lower strike put as protection. This ensures the risk is contained while allowing the investor to earn a net credit (premium). The Bull Put Spread is equivalent to the Bull Call Spread in its payoff structure but is implemented to generate a net credit and income.