A put credit spread is the trade Greenlight finds most often when you are bullish. You get paid up front, you know your worst case before you start, and you win if the stock simply does not fall much.
You sell one put below the current price and, at the same time, buy a cheaper put a little further below it. The put you sell brings in money. The put you buy costs a bit of that money back, and in exchange it caps how much you can lose.
XYZ trades at $100. You sell the $95 put for $1.65 and buy the $90 put for $0.60. You collect the difference: $1.05, which is $105 per spread because each option covers 100 shares.
You are risking $395 to make $105. That only works because the trade wins more often than it loses. Greenlight shows the estimated chance of profit on every idea, and it ranks ideas by what they are worth on average, not just by how often they win. A credit spread with a 75% chance and a bad payoff can still be a poor trade.
It looks for a short strike around a 0.20 to 0.30 delta (roughly a 70 to 80% chance of expiring worthless), a credit of at least 20% of the width, liquid options on both legs, and no earnings date before expiry. It then writes out the full plan: the entry price, how many contracts fit your risk budget, where to take profit (usually 50% of the credit), where to stop, and the date to be out by.
Try it in the demo Next: reading the risk graph
For information and education only. Not financial advice. Greenlight never places trades. Examples use round sample numbers, not live prices. Options involve risk and are not suitable for everyone; read the options disclosure document.