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    ScreenersExample Trade: Bull Put Spread

    Understanding Vertical Spread Results

    Let's walk through a bull put spread screener result step by step. We'll use Apple (AAPL) with a Balanced risk profile to explain the key metrics for this defined-risk strategy.

    What is a Bull Put Spread?

    A bull put spread (also called a "put credit spread") is a defined-risk, bullish strategy where you sell a put at a higher strike and buy a put at a lower strike. You collect a net credit and your maximum loss is capped by the long put.

    Defined risk
    Max loss = spread width - credit received
    Lower capital requirement
    Only collateral for the spread width, not full strike
    How the spread works:
    Sell put at higher strike (collect premium)
    Buy put at lower strike (pay premium)

    The Setup

    Underlying
    AAPL
    Apple Inc.
    Risk Profile
    Balanced
    Moderate risk-reward
    Strategy
    Bull Put Spread
    Defined-risk credit spread
    Collateral
    $340
    Max risk per contract

    The Screener Output

    Below is the actual output from the bull put spread screener. We've numbered the key metrics so you can reference the explanations that follow.

    Screened1
    Evaluated10
    Matches10
    TickerDTEStrikesCreditGain/LossRoRIV/HVPOPAnn. RoR
    AAPL
    32d
    2026-02-27
    1
    $250/$245
    $5 wide
    2
    $1.603
    $160-$340
    4
    47.1%5
    		0.98x
    76%
    6
    536.8%7

    Spread Details

    Current Price
    $255.098
    Short Strike$250.00
    Long Strike$245.00
    Spread Width$5.00
    Short Premium$5.850
    Long Premium$4.250
    Net Credit$1.600

    P&L Profile9

    Max Gain$160
    Max Loss$340
    Breakeven$248.40
    Collateral$340
    Distance to Short2.0%
    Return on Risk47.1%

    Greeks & Volatility

    Net Greeks
    Delta (Δ)0.085
    Gamma (Γ)-0.0024
    Theta (Θ)0.006
    Vega (ν)-0.028
    Volatility
    Short IV27.0%
    Long IV27.9%
    Realized Vol27.9%
    IV/HV Ratio0.98

    Backtest Analysis10

    Data Points504
    Profitable382
    Unprofitable122
    POP75.7%
    Expected Return$38
    Expected Return %0.1%
    History Period2 years

    What Each Metric Means

    1

    Days to Expiration (DTE)

    32 days

    Both legs of the spread expire on February 27, 2026, which is 32 days away. The Balanced profile targets 21-45 DTE for vertical spreads.

    Why this timeframe: Provides good theta decay while allowing enough time for the trade to work. Shorter DTE has faster decay but less margin for error.

    2

    Strike Prices

    $250 / $245

    The spread consists of two puts with different strikes:

    Short Put: $250
    You sell this put and collect $5.85 premium
    Long Put: $245
    You buy this put and pay $4.25 premium

    The $5 width between strikes defines your maximum risk. The long put protects you if AAPL drops significantly below your short strike.

    3

    Net Credit

    $1.60 per share

    The net credit is the difference between the premium you collect (short put) and the premium you pay (long put): $5.85 - $4.25 = $1.60 per share, or $160 per contract.

    This is your maximum profit. If AAPL stays above $250 at expiration, both puts expire worthless and you keep the full $160.
    4

    Gain/Loss Profile

    $160 / -$340

    Unlike a naked put, your risk is defined and capped:

    Spread Width:$5.00 × 100 = $500
    Net Credit Received:- $160
    Maximum Loss:$340

    No matter how far AAPL falls, you can never lose more than $340 per spread. This is the key advantage of vertical spreads over selling naked options.

    5

    Return on Risk (RoR)

    47.1%

    Return on Risk shows your potential profit relative to the capital at risk:

    Max Gain / Max Loss = $160 / $340 = 47.1%

    This means for every dollar you risk, you could make 47 cents. This is a key metric for comparing different spread opportunities.

    Below 20%
    Low reward
    20% - 50%
    Typical
    Above 50%
    Attractive ✓
    6

    Probability of Profit (POP)

    76%

    Based on 2 years of historical data, there's a 76% probability that AAPL would have stayed above the breakeven price ($248.40) over similar 32-day periods.

    Note the trade-off: This spread has a lower POP (76%) than a typical CSP because we're selling closer to the money for higher premium. The 47% return on risk compensates for this.
    7

    Annualized Return on Risk

    536.8%

    If you could repeat this exact trade throughout the year with similar results, your annualized return would be approximately 536.8%.

    How it's calculated:
    Return on Risk: 47.1%
    Days in trade: 32
    Annualized: 47.1% × (365/32) = 536.8%

    This high number reflects the efficiency of defined-risk spreads. You're using $340 in collateral instead of $25,000+ for a cash-secured put at similar strikes.

    8

    Current Price & Distance to Short

    $255.09 / 2.0%

    AAPL is currently trading at $255.09, which is 2.0% above your short strike of $250. This is called the "cushion" or "distance to short strike."

    More cushion
    Higher POP, lower premium
    Less cushion
    Lower POP, higher premium

    A 2% cushion is relatively tight, which is why this spread offers attractive premium but moderate POP. More conservative traders might prefer 5-10% cushion.

    9

    P&L Profile & Breakeven

    $248.40

    The breakeven is calculated as: Short Strike - Net Credit = $250 - $1.60 = $248.40

    AAPL above $250 at expiration
    Both puts expire worthless → Keep full $160 credit
    AAPL between $245 and $250
    Partial loss → Depends on exact price
    AAPL below $245 at expiration
    Maximum loss → Lose $340 (capped by long put)
    10

    Backtest Analysis

    504 data points

    The screener analyzed 504 historical scenarios (approximately 2 years of trading days) to determine how often a similar spread setup would have been profitable.

    382
    Profitable
    AAPL stayed above breakeven
    122
    Unprofitable
    AAPL fell below breakeven
    Expected Return: $38 — This factors in both winning and losing scenarios. On average, you'd expect to make $38 per trade based on historical data.

    Bull Put Spread vs Cash-Secured Put

    Bull Put Spread

    • Defined risk — max loss is capped
    • Lower capital — only $340 collateral vs $25,000+
    • Higher leverage — better capital efficiency
    • Lower absolute profit potential

    Cash-Secured Put

    • Higher premium — keep full premium collected
    • Stock acquisition — get shares if assigned
    • High capital — need full strike × 100
    • Undefined risk — stock could go to zero
    When to use a Bull Put Spread: When you're bullish but want defined risk, when you have limited capital, or when you want to trade more positions with the same account size.

    Trade Summary

    What You're Agreeing To

    • 1
      Set aside $340 as collateral for 32 days
    • 2
      Receive $160 net credit immediately
    • 3
      If AAPL stays above $250: keep full $160
    • 4
      If AAPL falls below $245: max loss of $340

    Key Takeaways

    Defined risk
    Max loss capped at $340
    Attractive return on risk
    47.1% potential return on capital
    Capital efficient
    Only $340 vs $25,000+ for CSP

    Ready to find vertical spread opportunities?

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