3 Bull Put Spread Ideas to Capitalize on the AI Driven Bull Market

Market Overview - The market is showing encouraging signs, suggesting that bull put spread trades could perform well if the trend continues [1] Bull Put Spread Strategy - A bull put spread involves selling a naked put and buying a further out-of-the-money put to create a spread, which is considered less risky than a naked put due to capped losses [2] Broadcom (AVGO) Analysis - Broadcom (AVGO) is currently above the 21, 50, and 200-day moving averages, rated as a 100% Buy with a strengthening short-term outlook [3] - A bull put spread can be created by selling the October 17 put with a strike price of $320 and buying the $310 put, trading at around $2.25, resulting in a premium of $225 and a maximum risk of $775 [3] - This trade represents a 29.03% return on risk if AVGO stock remains above $320 until October 17, with a breakeven point at $317.75 [4] Palantir (PLTR) Analysis - Palantir (PLTR) stock is rated a 100% Buy with the strongest short-term outlook, indicating strong performance [6] - A bull put spread can be established by selling the October 17 put with a strike price of $160 and buying the $155 put, trading at around $0.72, leading to a premium of $72 and a maximum risk of $428 [6] - This trade offers a 16.82% return on risk if PLTR stock remains above $160 until October 17, with a breakeven point at $159.28 [7]