Bull puts spreads are a type of option trade that allows an investor to sell puts on higher priced stocks while limiting the amount of downside risk. The trade involves selling a put in order to bring cash into the trading account and purchasing a put at a lower strike price as protection against a major drop in the stock. One of the best ways to learn about bull put spreads is by using an example. The example for this trade uses the stock of Goldman Sachs which is a higher priced stock that may have some significant downside exposure but may have found a bottom.
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Bull Put Spreads Information
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