Bear Put Spread Calculator
A bear put spread (also called a debit put spread) is a bearish options strategy where you buy a put at a higher strike and sell a put at a lower strike, paying a net debit.
This strategy profits when the stock falls to or below the short put strike. The sold put reduces your cost but limits your profit potential. It's more capital-efficient than buying a put outright.
Bear put spreads are excellent for expressing a bearish view with defined risk and lower cost than long puts.
Hypothetical example: SPY at $585. Premiums and IVs are illustrative inputs, not current quotes. Dates roll forward for the demo. Results exclude fees and assignment effects.
| Action | Type | Strike | Exp | Premium | Qty | Delta | Gamma | Theta | Vega |
|---|---|---|---|---|---|---|---|---|---|
| buy | put | $590 | Oct 16 | $11.00 | 1 | -51.7 | 1.16 | -15.69 | 72.20 |
| sell | put | $580 | Oct 16 | $6.80 | 1 | 40.2 | -1.12 | 16.00 | -70.07 |
| Net | -11.5 | +0.03 | +0.31 | +2.14 | |||||
When to Use
- You expect the stock to decline moderately
- You want to reduce the cost of a bearish position
- You have a downside target in mind
- Implied volatility is high (making spreads cheaper than long puts)
Risk Profile
At expiration, before fees. Arithmetic examples below use their stated inputs, separately from the interactive model above.
Buy $100 put, sell $95 put for $2.25 net debit
($100 - $95) - $2.25 = $2.75
$2.75 × 100 = $275 per contract
Stock closes above $100 at expiration
Net debit paid = $2.25
$2.25 × 100 = $225 per contract
Find the stock price where P/L = $0
$100 - $2.25 = $97.75
Stock must fall below $97.75 to profit
Bear Put Spread vs Bear Call Spread
Both are bearish strategies. A bear put spread is a debit strategy (you pay upfront), while a bear call spread is a credit strategy (you collect premium). Bear put spreads can have higher profit potential for large moves down, while bear call spreads benefit from time decay and are better when you expect the stock to stay flat or decline moderately.
How to Build a Bear Put Spread
- 1Enter your stock ticker and select an expiration date
- 2Buy a put at a strike at or near the current price
- 3Sell a put at a lower strike (your target or support level)
- 4Review the payoff diagram and breakeven point
- 5Use IV modeling to see how volatility affects the position
Frequently Asked Questions
Bear put spreads cost less and have defined risk, but cap your profit. Long-put profit is capped at the strike minus the premium if the stock reaches zero, and the outright put costs more than the corresponding spread. Use spreads for moderate moves, long puts for large expected declines.
Ready to build your bear put spread?
OptionsCalc provides option-leg payoff diagrams, net Greeks, and IV modeling. Free to use, no account required.
Launch Calculator