A bull put spread keeps its net credit above the sold strike and loses a fixed amount below the bought strike
A credit spread is two options of the same type and expiry, one sold and one bought further away. The sold leg is nearer the index, so it brings in more premium than the bought leg costs. The difference is the net credit that the seller receives.
A bull put credit spread sells a put near the money and buys a put lower down. The seller gains if the index stays above the sold strike. A bear call credit spread sells a call near the money and buys one higher up, and gains if the index stays below the sold strike.
The chart is a bull put spread on the 30 Jun 2026 chain as it stood on 10 Jun 2026. The seller keeps the net credit while the index holds above the sold strike. Between the two strikes the loss grows, and below the bought strike it stops at a fixed amount.
The maximum loss is the distance between the strikes, less the credit received. The bought leg is what limits the loss, and it is also what reduces the credit. A wider spread pays more and risks more, so the width is a choice with a price.
Two checks before any figure. Margin for the spread is lower than for a naked short put, but it is not zero and it stays blocked while the position is open. And a credit is not a profit: STT and fees come out of it, and on a gap day the loss can reach its maximum.
Before you trade. Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. Read the SEBI study