Bear put spread
Buy a higher-strike put, sell a lower-strike put. Cheaper than buying a put outright; max profit reached at the lower strike.
INPUTS
Underlying price
$
Centers the payoff chart and computes P&L at this price.
LEGS
Long upper put
Type
Side
Strike
$
Qty
Premium
$
Short lower put
Type
Side
Strike
$
Qty
Premium
$
RESULT
$60.002 strikes$140.00
P&L at current spot (expiry)
−$150
Net debit−$150
Max profit+$350
Max loss−$150
Breakeven$98.50
Risk / reward2.33 : 1
RISK PROFILE
Max profit
Strike width × 100 − net debit
Max loss
Net debit paid
Breakeven
Upper strike − (debit ÷ 100)
RELATED STRATEGIES
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