Sell OTM Put Spread
A great strategy when you’re “slightly bullish” and want to make money even if you’re wrong a little bit.
Sell a put option with a strike price lower than the current price of the stock. Buy a put option with a strike price even lower than the strike you sold.
Example: XYZ at $60. Sell the $55 put, Buy the $50 put for a net price of $1.50 credit.
You’ll profit $1.50 as long as XYZ is anywhere above $55 at expiration, but could lose $3.50 if it falls below $50 at expiration.