Bear Put Spread Calculator
A bear put spread is a vertical debit spread: you buy a higher-strike put and sell a lower-strike put at the same expiration. It's a cost-efficient way to bet on a stock declining with defined risk.
Price it
Practical example
When to use it
- You have a bearish directional view and want defined risk at a lower cost than a naked long put
- Strike selection defines the view: ITM spreads are conservative/high-probability; far-OTM spreads are aggressive crash bets with asymmetric R:R
- You're willing to cap downside profit at the short strike in exchange for a lower debit
- You want to avoid short-sale mechanics (borrow, margin, unlimited risk)
Risks
- Max profit is capped — if the stock crashes well below the short strike, you don't participate below it
- You lose the full debit if the stock stays above the long strike at expiration
- Theta is net negative but smaller than a naked long put because the short leg offsets
- Vega exposure is small but net long — a big IV collapse after a feared event can hurt a wide spread
- Put skew means the long leg is structurally expensive; the short leg partially mitigates this
The deeper breakdown
How a Bear Put Spread Works
Buy a put at strike A and sell a put at strike B (B < A), same expiration. The short put partially finances the long put, lowering your debit and narrowing your profit band.
Example
AAPL at $195. Buy the $200 put for $6.00, sell the $190 put for $2.80. Net debit: $3.20 ($320). Max profit = ($10 − $3.20) × 100 = $680.
Strike Selection Determines the View
Same principle as the bull call spread — the strategy is "bearish" but where you place the strikes changes everything:
Why Not a Naked Put?
Same logic as bull call vs naked call. Naked puts are net long vega and IV-sensitive; bear put spreads reduce vega, reduce theta bleed, and cap max loss. You give up unlimited downside participation for a known cost and cleaner Greek profile.
IV Considerations
Modestly net long vega. IV regime matters less than strike selection and your expected move. Don't confuse this with a bull put (credit) spread, where IV matters a lot.
Key Takeaway
Bear put spreads are a defined-risk bearish position. Strike selection — not the strategy name — tells you whether you're expecting a mild drift lower or a waterfall decline.
Calculations are theoretical projections from standard pricing models (Black-Scholes), not predictions. Real fills, slippage, dividends, and volatility shifts will cause outcomes to differ. Not investment advice. Full disclaimer.