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Market Structure8 min read

Options Strategy Basics

This page focuses on two seller-side credit spreads: Bull Put Credit Spread and Bear Call Credit Spread, and how they combine into an Iron Condor. Educational only, not trading advice.

Bull Put Credit Spread: Lower Support Credit Spread

A Bull Put is a seller-side lower structure: sell a higher-strike put and buy a lower-strike put as protection. Both legs use the same underlying, expiry, and option type.

Short put: reference levelLong put: lower protectionWing width: e.g. 20 pts
PriceP/LLong PutShort Put20 pt width
Example: If the chart shows S 7,125, a 20-point teaching example is: sell the 7,125 put and buy the 7,105 put as protection, same expiry. If the credit is $2.00, max credit is about $200 and max risk is about $1,800 before fees. Educational example only.

Strike Axis Diagram

Price increases upward: put spread below current price

Higher pricePut spreadBuy Put7105PSell Put7125PCurrent7168

Order Ticket Example

Bull Put: same expiry, sell higher put, buy lower put

ExampleCurrent 7,168.00
-SPXW 260427 7125.00P>
Sell1
-SPXW 260427 7105.00P>
Buy1

Bear Call Credit Spread: Upper Resistance Credit Spread

A Bear Call is a seller-side upper structure: sell a lower-strike call and buy a higher-strike call as protection. It describes an upper resistance structure, not a sell recommendation.

Short call: reference levelLong call: upper protectionWing width: e.g. 20 pts
PriceP/LShort CallLong Call20 pt width
Example: If the chart shows R 7,205, a 20-point teaching example is: sell the 7,205 call and buy the 7,225 call as protection, same expiry. If the credit is $2.50, max credit is about $250 and max risk is about $1,750 before fees. Educational example only.

Strike Axis Diagram

Price increases upward: call spread above current price

Higher priceCall spreadCurrent7168Sell Call7205CBuy Call7225C

Order Ticket Example

Bear Call: same expiry, sell lower call, buy higher call

ExampleCurrent 7,168.00
-SPXW 260427 7205.00C>
Sell1
-SPXW 260427 7225.00C>
Buy1

Same-Day Expiry (0DTE) & Iron Condor

Expiry date: 0DTE means same-day expiry. If the Structure Insight date is 2026-04-24, both legs in the example use the same 2026-04-24 SPX/SPXW expiry. The key is same expiry for both legs.
Iron Condor: A Bull Put plus a Bear Call forms a seller-side Iron Condor. Example: S 7,100 and R 7,195 with 20-point wings creates 7,100/7,080 put spread plus 7,195/7,215 call spread. This explains boundaries, not an order recommendation.
PriceP/LPut lowerRange zoneCall upper

Strike Axis Diagram

Four legs around current price: lower put spread + upper call spread

Higher pricePut spreadCall spreadBuy Put7080PSell Put7100PCurrent7168Sell Call7195CBuy Call7215C

Short Iron Condor Example

Four legs with same expiry: lower put spread + upper call spread

ExampleCurrent 7,168.00
-SPXW 260427 7100.00P>
Sell1
-SPXW 260427 7080.00P>
Buy1
-SPXW 260427 7195.00C>
Sell1
-SPXW 260427 7215.00C>
Buy1
Important Notice
This content only explains model structures and chart reference levels. Options trading involves high risk and may result in partial or total loss of principal. The platform does not provide investment advice, trading instructions, recommendations, or return guarantees.