U.S. markets have been on a historic bull run since the end of the pandemic. However, many investors may start to be wary. Instead of looking for stocks for potential capital appreciation, investors can bide their time and trade bull puts for short-term income.
The bull put spread is an options trading strategy firmly aimed at profiting from moderate price increases of an underlying asset. The strategy involves selling a put option and then buying a put option at a lower strike price, resulting in a net credit.
