25% off your first 3 months of Pro, or your first year on yearly, with FALL25, through Nov 6.
For a first Pro subscription. The 7-day free trial comes first.
Bear put spread calculator
Bearish debit. Buy a put and sell a lower put to cheapen the long.
OutlookBearish
Max profitLimited
Max lossLimited
LevelIntermediate
What is a bear put spread?
A bear put spread profits as the stock falls toward the short put. Max loss is the debit. Max profit is the width minus that debit.
Legs
- Buy a put at strike A
- Sell a put at strike B
Live example on SPY
Bear Put Spread
Net debit$69.50
Max loss$69.50
Max profit$130.50
Chance of profitLocked: ProUpgrade
BreakevenBelow $754.31 (−0.2%)At expiration
- 755P+112/18 · $16.18
- 753P−112/18 · $15.48
With SPY at 755.53, on the Dec 18 expiration (49 days out): buy 1 755 put and sell 1 753 put. Net debit $69.50. Max profit $130.50; max loss $69.50. Breakeven at expiration: Below $754.31 (−0.2%).
Open this bear put spread in the calculator to move the strikes, change the date and implied volatility, and read profit and loss by price and date.
Questions
- What is a bear put spread?
- A bear put spread profits as the stock falls toward the short put. Max loss is the debit. Max profit is the width minus that debit.
- When does a bear put spread make money?
- Bearish debit. Buy a put and sell a lower put to cheapen the long.
- What is the max profit of a bear put spread?
- Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.
- What is the max loss of a bear put spread?
- Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.
- How do I calculate a bear put spread's profit and loss?
- Open the bear put spread in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.