Bearish strategy · Intermediate
Market outlook Moderately bearish
Long higher-strike put financed by short lower-strike 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 the strikes far apart for a larger potential profit at the cost of a bigger net debit.
Key difference: Higher max profit and higher cost; behaves more like a standalone long put.
Best for: Traders with strong bearish conviction who still want defined risk.
Place both strikes close together and close to the current price for a cheaper, higher-probability trade.
Key difference: Lower cost and higher probability of some profit, but the maximum payout is smaller.
Best for: Traders who want defined risk on a modest, higher-confidence decline.
Common questions
Selling the lower-strike put reduces the net cost and lowers the breakeven price versus a naked long put, in exchange for capping the maximum profit at the lower strike.
You keep the intrinsic value of the long put, but the short put expires worthless. Profit is prorated based on how far the stock finished below the higher strike.
No. Both legs are defined at fixed strikes, so the maximum loss is capped at the net premium paid regardless of how far the stock rises.
If the stock falls sharply and the short put goes deep in-the-money, you could be assigned early and forced to buy shares — closing or rolling the spread avoids this risk.
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 spread
Head-to-head
Structure, cost, and breakeven differences compared side by side
Head-to-head
Structure, cost, and breakeven differences compared side by side
Head-to-head
Structure, cost, and breakeven differences compared side by side
Head-to-head
Structure, cost, and breakeven differences compared side by side
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.