Strategy lesson · Spreads · bearish
Bear Put Spread Explained
Debit vertical: buy a higher-strike put and sell a lower-strike put. Bearish defined-risk structure.
How a Bear Put Spread is built
Buy put at K2, sell put at K1 (K2 > K1), same expiration.
- Leg 1: buy put · strike template 100 · premium ~4 · 1 contract(s)
- Leg 2: sell put · strike template 90 · premium ~1.5 · 1 contract(s)
Risk & reward snapshot
| Market bias | bearish |
|---|---|
| Max profit | Width − net debit. |
| Max loss | Net debit paid. |
| Breakeven | Long put strike − net debit. |
Figures are conceptual for the classic structure. Your actual premiums, strikes, and fees change the numbers — confirm on the calculator.
When traders use it
- Moderately bearish without wanting unlimited short-stock style risk.
Key risks
- Needs downside move; sideways markets often lose the debit.
Practical tips
- Useful when long puts feel too expensive; short lower put finances part of the debit.
Practice on the calculator
- Open the Bear Put Spread calculator.
- Load a symbol and option chain; fill realistic mid premiums.
- Review max profit, max loss, breakevens, and the date × price heatmap.
- Change strikes and DTE to see how risk shape shifts.
FAQ
What is a Bear Put Spread?
Debit vertical: buy a higher-strike put and sell a lower-strike put. Bearish defined-risk structure.
What is the max loss on a Bear Put Spread?
Net debit paid.
When should I use a Bear Put Spread?
Moderately bearish without wanting unlimited short-stock style risk.