Lobster I once made a good profit on the exact scenario you just explained. It was kind of laughable I quickly was trying to close my position (long calls) into a short covering panic rally , canceled the order then resent it at a higher limit. It turned out that I had not canceled quick enough and actually sold on the first order. My second order for the same quantity went through now accidently (short calls) The volatility soon dropped like a rock I quickly bought back the calls. "profitable accident"
ok, but you are referring to a credit spread since you are selling the ATM and buying the OTM...Some people might have been confused because when you said bull put spread, it seems to imply a vertical or debit spread...Just a clarification...
Actually, let me fade myself on that last post...bull put spread is right...jeez, sorry about that one...
I think it's a useful idea with all the usual caveats about any trade or vehicle. There were some very cheap calls to be had a month ago.