The BEST Bull Spread Option Strategy to Use
Option Spreads Explained – Four Part Series
Part I – Explanation of Both Types of Bull Spreads
Part II – The Best Bull Spread Option Strategy?
Part III – A Real World Example – How We Invested Using Both Strategies
Part IV – Real World Results and Lessons Learned
- If you’re bullish on a stock, you can earn truly outsized profits with limited risk by using either a Bull Call or Bull Put Spread
- The Key Differences & Major Considerations
If you’ve never traded an option spread before, the first part of this series will tell you all you need to do so with complete confidence and understanding of the risks and rewards.
It will explain the key differences between using Calls and using Puts to form the spread, and what you need to consider in choosing between the two.
Bull Spread Concept Explained
In general, a bull option spread is one that makes money if the price of the underlying stock increases and, by extension, a bear option spread is one that produces profits if the stock price decreases. For simplicity sake, I will limit the discussion to only bull option spreads, but the principles are just the e