Bull Put Spread Screener

1. Selecting the Right Stock

A Bull Put Spread is a neutral-to-bullish strategy. You should select a stock that you believe will go up, or at least trade flat / not drop significantly before expiration. Specifically, you want to choose stocks that are in a strong uptrend on the daily chart, or ones that have recently bounced off strong technical support levels.

Additionally, look for stocks with high implied volatility (IV) to generate a high net credit for your spreads. However, you should avoid stocks or sectors that are completely unpredictable (like biotech stocks pending FDA approval) where a sudden massive drop could blow past your support levels.

2. Selecting the Timeframe (DTE)

Open bull put spreads with about 30 days to expiration. As a net option seller, shorter durations let time decay (theta) work in your favor while giving the market less time to move against you.

3. Selecting the Short Strike Price (K_short)

Because a Bull Put Spread is typically used to generate short-term income, you should aim to place both of your strike prices below the current trading price of the stock. Your Short Strike (the option you sell) should ideally be placed out-of-the-money, tucked safely underneath a known technical support level to maximize the probability that the option expires worthless.

4. Selecting the Long Strike Price (K_long)

The lower strike price (the option you are buying) acts as your insurance. It caps your maximum loss if the stock crashes. A wider distance between the short and long strikes will yield a higher premium credit, but will also increase your maximum risk.