What does put trade bullish mean?

The bull put spread is a popular options trading strategy designed to capitalize on a stock's upward momentum or stability. It involves a simultaneous execution of two put option transactions.

In this strategy, the trader first sells a put option with a higher strike price. This position profits if the underlying stock's price remains above the strike price at expiration.

Simultaneously, the trader buys a put option with a lower strike price, also with the same expiration date. This second position serves as a hedge, limiting potential losses if the stock price declines significantly.

The key advantage of the bull put spread lies in its risk-limiting nature. By combining these two options, the trader limits their downside risk to the difference between the strike prices, minus the net premium paid for the spread.

Moreover, if the stock price remains stable or rises, the sold put option expires worthless, while the bought put option's value decreases, resulting in a profit for the trader. This profitability is due to the net premium received from selling the higher strike put option exceeding the cost of buying the lower strike put option.