The short put spread has a setup of selling a naked put and buying one long put. This can be seen as massively reducing your maximum risk on a cash secured put strategy. The difference between a CSP and a short put spread is, your risk is limited to the difference in the strikes and your max profit is reduced by the price you pay for the long put option. This is a slightly bullish strategy that uses risk management.
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Option Contracts
Short Put
Long Put
Equity - Long
100 shares
Estimated Returns
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