Strategy: Credit Spreads

Sell a put and buy a lower-strike put. You collect a credit.

SPY at $580: sell $570 put ($3), buy $565 put ($2). Credit $1 ($100).

Max profit = $100 if SPY stays above $570. Max loss = width − credit = $5 − $1 = $4 ($400).

Breakeven = $570 − $1 = $569.