What is the max profit of a put ratio backspread?

Unlimited: the profit keeps growing the further the price moves its way. The calculator gives the figure for your strikes and expiration.

What is the max loss of a put ratio backspread?

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 put ratio backspread's profit and loss?

Open the put ratio backspread 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.

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Put ratio backspread calculator

Bearish. Sell one put and buy two lower puts. Large profit on a crash.

Open in the calculator All strategies

OutlookBearish

Max profitUnlimited

Max lossLimited

LevelAdvanced

What is a put ratio backspread?

A put ratio backspread is long extra OTM puts funded by a short higher put. A collapse pays. A modest drop into the short put is the typical max-pain zone.

Legs

Sell one put at A
Buy two puts at B

Payoff at expiration, sketched. The live example below has the real prices.

Live example on SPY

Net debit$1,479.00

Max loss$1,679.00

Max profit$43,399.60

Chance of profitLocked: ProUpgrade

BreakevenBelow $736.21 (−2.6%)At expiration

755P−112/18 · $16.18
753P+212/18 · $15.48

SPY · Oct 30, 2026, 3:59 PM ET

With SPY at 755.53, on the Dec 18 expiration (49 days out): sell 1 755 put and buy 2 753 puts. Net debit $1,479. Max profit $43,399.60; max loss $1,679. Breakeven at expiration: Below $736.21 (−2.6%).

Open this put ratio backspread 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 put ratio backspread?: A put ratio backspread is long extra OTM puts funded by a short higher put. A collapse pays. A modest drop into the short put is the typical max-pain zone.
When does a put ratio backspread make money?: Bearish. Sell one put and buy two lower puts. Large profit on a crash.
What is the max profit of a put ratio backspread?: Unlimited: the profit keeps growing the further the price moves its way. The calculator gives the figure for your strikes and expiration.
What is the max loss of a put ratio backspread?: 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 put ratio backspread's profit and loss?: Open the put ratio backspread 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.