What is a Bear Put Spread?
A Bear Put Spread reduces the cost of a bearish put option position by simultaneously selling a lower-strike Put. The credit from the sold Put offsets the debit of the bought Put — cutting your total cost significantly. You profit if the stock falls toward your target, but your gains are capped at the lower strike.
Nifty at ₹22,000 and you expect a fall to ₹21,500. A plain 22,000 Put costs ₹180, but that ₹13,500 per lot feels too much. You buy the 22,000 Put for ₹180 AND sell the 21,500 Put for ₹90. Net cost: ₹90 × 75 = ₹6,750. If Nifty falls to 21,500, you profit ₹27,000 — a 300% return on ₹6,750.
At a Glance
Max Profit
(Width − Net Premium) × Lot
Max Loss
Net Premium Paid only
Breakeven
Higher Strike − Net Premium
How to Set It Up
| Action | Type | Strike | Expiry | Qty |
|---|
| Buy | Put (PE) | Higher Strike — ATM or slightly OTM | Same expiry (30–45 DTE) | 1 Lot |
| Sell | Put (PE) | Lower Strike — OTM (your target) | Same expiry | 1 Lot |
P&L Simulator
Bear Put Spread
📊 Bear Put Spread — Payoff Chart + P&L Calculator
Index Price: 22000 · Buy Put Strike: 22000 · Sell Put Strike: 21500 · Buy Premium: 180 · Sell Premium: 90 · Lot Size: 75 · Price at Exit: 21600
When Should You Use This Strategy?
✓ When to Use / ✕ When to Avoid / ◉ IV / ◷ DTE
3 use items · 2 avoid items
⊞ Trade Table
0 legs · 3 scenarios
#Vertical Spreads
Disclaimer
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