JNJ Option Profit & Loss Chart

Bull Put Spread for JNJ (Johnson & Johnson). In this strategy, an investor simultaneously sells put options at a specific strike price and purchases the same number of puts at a lower strike price. Both put options have the same expiration date. This strategy is used when the investor is bullish and expects the price of the underlying asset to remain above the higher strike price at expiration. The investor limits their profit potential but also limits their risk compared to selling puts outright. The strategy is also known as a 'credit put spread' because the investor receives a net credit for establishing the position.