A Bull Spread is a type of vertical spread that includes the simultaneous purchase and selling of call or put options with different strike prices but the same underlying asset and expiration date. The goal of a bull spread is to profit from a slight increase in the price of the underlying security or asset.The option with the lower strike price is purchased, while the option with the higher strike price is sold. Both options have the same expiration date, but they differ in strike price. This is known as a bear put spread. The premium paid to buy the option will decrease by the amount of the premium received to sell the option, which is the opposite of a bull call spread.The expiration date for bull puts spread is equal to the expiration date of the underlying stock options, i.e. is the options' expiration date.When the underlying stock price is below the strike price at the expiration date, if the position is long a bull put spread, the investor is allowed to sell all the underlying stock puts. Unlike an extended bull call spread, a bull put spread can be executed at any time during the life of the underlying stock options.
