Introductory Context
"A complete institutional masterclass on selling OTM put spreads to capture steady upward drift and high win-rate credit on Nifty 50, Bank Nifty, and NSE blue-chips."
Strategy Dossier & Taxonomy
Strategy: Bull Put Spread (Vertical Credit Spread) | Market: NSE Derivatives | Outlook: Neutral to Bullish | Win Rate: Typically 70%–80%
1. The Core Principle in Plain English
A Bull Put Spread is a credit spread where you sell a higher strike Put option (closer to spot) and simultaneously buy a lower strike Put option (further OTM) for insurance.
You collect a net cash credit upfront. As long as the stock stays above your short put strike at expiry, both options expire worthless and you retain 100% of the credit as pure profit.