Put Ratio Spread: Profit from a moderate fall — but beware the danger zone below sold strikes
July 25, 2026
What is a Put Ratio Spread?
A Put Ratio Spread (or Bear Ratio Spread) means you buy 1 higher-strike Put and sell 2 lower-strike Puts. Profit from a moderate fall, but face increasing losses if the stock falls too far past the sold put strikes.
At a Glance
Max Profit
At the lower (sold) strike
Max Loss
Large if stock falls through sold strikes
Breakeven
Higher Strike − Net Debit/Credit
Type
Stock falling past sold strikes
How to Set It Up
Action
Type
Strike
Expiry
Qty
Buy
Put (PE)
Higher Strike (ATM/OTM)
Same expiry
1 Lot
Sell
Put (PE)
Lower Strike (OTM)
Same expiry
1 Lot
P&L Simulator
Put Ratio Spread
📊 Put Ratio Spread — Payoff Chart + P&L Calculator
Index Price: 22000 · Buy Put Strike: 22000 · Sell Put Strike: 21500 · Net Credit/Debit: 50 · 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
#options strategy
Disclaimer
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