How to Trade Bull Put Spreads on thinkorswim®

August 28, 2023 Beginner
Bull put spreads allow traders to define their theoretical maximum gain and loss and can make time decay work for them.
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Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options." Supporting documentation for any claims or statistical information is available upon request.

Commissions, taxes and transaction costs are not included in this discussion, but can affect final outcome and should be considered. Please contact a tax advisor for the tax implications involved in these strategies.

Spreads, Straddles, and other multiple-leg option strategies can entail additional transaction costs, including multiple contract fees, which may impact any potential return. These are advanced option strategies and often involve greater risk, and more complex risk, than basic options trades.

Uncovered options strategies involve potential for unlimited risk and must be done in margin accounts.

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

All security symbols, names, and market data are shown for illustrative purposes only, and should not be considered an offer to sell or a solicitation of an offer to purchase any security, or a recommendation of any strategy.

Past performance is no guarantee of future results.

Investing involves risks, including the loss of principal invested.

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