What is the max profit of a put ratio 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 put ratio spread?

Nearly unlimited: a large move against it can lose many times what it takes in. The calculator gives the figure for your strikes and expiration.

How do I calculate a put ratio spread's profit and loss?

Open the put ratio 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.

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Put ratio spread calculator

Buy one put and sell two lower puts. Profit to the shorts; large loss on a crash.

Open in the calculator All strategies

OutlookBearish

Max profitLimited

Max lossNearly unlimited

LevelExpert

What is a put ratio spread?

A put ratio spread is net short a put. A modest drop can pay. A collapse through the short puts is nearly stock-like downside.

Legs

Buy one put at A
Sell two puts at B

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

Live example on SPY

Net credit$1,479.00

ROIC1.96%

Max loss$73,620.00

Max profit$1,679.00

Chance of profitLocked: ProUpgrade

BreakevenAbove $736.21 (−2.6%)At expiration

Est. margin$73,751.50

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): buy 1 755 put and sell 2 753 puts. Net credit $1,479. Max profit $1,679; max loss $73,620. Breakeven at expiration: Above $736.21 (−2.6%).

Open this put ratio 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 put ratio spread?: A put ratio spread is net short a put. A modest drop can pay. A collapse through the short puts is nearly stock-like downside.
When does a put ratio spread make money?: Buy one put and sell two lower puts. Profit to the shorts; large loss on a crash.
What is the max profit of a put ratio 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 put ratio spread?: Nearly unlimited: a large move against it can lose many times what it takes in. The calculator gives the figure for your strikes and expiration.
How do I calculate a put ratio spread's profit and loss?: Open the put ratio 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.