Bear Put Spread Calculator
A Bear Put Spread is a defined-risk bearish strategy designed to capitalize on moderate downward price moves. By selling a lower-strike put option, you subsidize the cost of the higher-strike put option, lowering your cost of entry and establishing clear boundary lines for profit and risk.
The strategy is constructed by purchasing one higher-strike put option and selling one lower-strike put option of the same underlying asset and expiration date. The net premium paid represents your maximum loss. Maximum profit represents the difference between strikes minus the net debit.
Simulates P&L if the underlying closes at any price at expiry.
Frequently Asked Questions
What is the maximum risk of a Bear Put Spread?
The maximum risk is equal to the net premium paid (debit) to establish the position. You can never lose more than this amount.
How is the breakeven calculated?
The breakeven price is the higher strike price (Long Put strike) minus the net premium paid.