A bear put spread buys a put and sells a lower-strike put. Defined risk and reward make it a cost-efficient way to profit from a moderate decline.
Open the Bear Put Spread calculator →Use it when you expect a moderate decline and want defined risk at a lower cost than a single put. You buy a higher-strike put and sell a lower-strike put, which reduces the premium you pay.
It is most attractive when implied volatility is low and you have a downside target — set the short put near where you think the stock will bottom out.
Maximum loss is the net debit, reached if the stock stays above the higher strike. Maximum profit is the strike width minus the debit, reached if it closes below the lower strike.
Like all debit spreads, the reward is capped, so a crash earns no more than the spread width. Consider closing early once most of the value is captured rather than holding to the last day.
Use the free OptionProfit Bear Put Spread calculator to load a live option chain, build the trade, and instantly see the payoff chart, breakevens, probability of profit, Greeks and a Monte Carlo simulation of outcomes.
Selling the lower put cuts your cost and breakeven, raising your probability of profit, but caps the maximum gain at the spread width.
The net debit paid — the long put defines and limits your risk.
A bear call credit spread suits high IV and a "won’t rise" view; the bear put debit spread suits low IV and an active decline thesis.
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