Bearish strategy · Advanced
Market outlook Moderately bearish
Bear put spread with additional short put.
Each row reprices every live leg independently. Entry premiums stay fixed.
| Underlying price | Move | Profit / loss |
|---|
Dollar-scaled for each leg's quantity, multiplier, expiry, and IV. Theta is per day; vega and rho are per one percentage-point move.
| Leg | Delta | Theta/day | Vega |
|---|
Strike configurations
Place all three strikes closer together for a tighter, higher-probability profit zone.
Key difference: Smaller max profit range but higher odds the stock finishes inside the profitable band.
Best for: Traders targeting a specific modest downside level with tight conviction.
Space the two short strikes further apart to delay where uncapped losses begin.
Key difference: Gives the trade more room before the unlimited-loss zone below the lower short strike, at the cost of a larger net debit.
Adjustment: Buy back one short put if the stock drops hard through the middle strike to cap runaway risk.
Best for: Traders who want ladder economics but more cushion against a sharp decline.
Common questions
Below the lower short strike, losses grow substantially as the stock falls toward zero — unlike a bear put spread, the second short put isn't matched by an additional long put.
The extra premium from the second short put further reduces or eliminates the net cost, but it removes the defined-risk floor that a standard two-leg bear put spread has.
Common approaches include closing or rolling the position before expiration if the stock nears the lower short strike, or buying back one short put to restore a defined-risk profile.
It's generally reserved for experienced traders with a precise downside price target, since the payoff shape requires active monitoring near the lower strike.
Deep dive
Detailed explanations, management techniques, and real-world scenarios
Scenario Lab
Explore how this position changes before expiration
Quick reference
Quick answers about when to use, capital needed, and key risks
Profit and loss
Compare max profit, max loss and break-even across common strategies
Custom calculator
Combine calls, puts, stock, quantities and different expirations
Risk sensitivity
Inspect Delta, Gamma, Theta, Vega and Rho
Same market view
Every bearish structure on the site, ranked by risk and capital needed
Same experience level
Structures with a comparable learning curve to the bear put ladder
This calculator uses exact intrinsic value at a leg’s expiration and Black–Scholes theoretical value while that leg remains open. Position Greeks use the same visible legs and model assumptions. Results exclude fees, tax, liquidity, margin, early exercise and assignment behavior. Educational illustration only—not financial advice.