Learn / Options / Bear put spread
Bear put spread
You buy a put and sell a lower one. You pay a debit for a bet on a fall, and the gain is capped.
By M.M. · Published 5 Nov 2026
What it is
A bear put spread is two puts with the same expiry. You buy the higher strike and sell the lower strike. You are paying for the right to sell the stock higher. The put you sell makes that cheaper, and it stops the gain once the stock falls through the lower strike.
At expiry the debit is the most you can lose. The most you can make is the distance between the strikes, minus the debit. Past the lower strike, a further drop does not pay you more.
When people use it
People use it when they expect a decline and they want the cost fixed in advance. A single put has the same direction and a larger bill. The spread is the cheaper version, with a ceiling on the profit.
A $100 stock
Take a stock at $100. Volatility is 25 percent, the risk-free rate is 4 percent, and expiry is 30 days out.
Buy the 100 put for $2.69 and sell the 90 put for $0.19.
Above 100 both puts expire. Below 90 the profit stops growing. You pay a net debit of $2.50. At expiry it breaks even at $97.50. The most you can make at expiry is $7.50. The most you can lose at expiry is $2.50.
The model uses one volatility for every strike, a flat risk-free rate, and no dividend. A live option quote will differ. Each contract here covers one share. A listed equity contract usually covers 100 shares.
Risks
A modest drop can still finish above the breakeven, and then you lose money even though you were right about the direction. If the stock never falls, both puts expire and the debit is the loss.
Before expiry the long put can lose value as time passes. If you sell the spread early, the price you get depends on volatility as well as the stock. The short put can also be assigned if it is in the money, which leaves you long shares.
Try this plan
The builder below starts on this spread at a $100 stock. Change the ticker or the legs, then copy the share link. The same tool lives at the options payoff builder.
Education only. Prices are theoretical Black-Scholes values, not live option quotes, and this is not investment advice.
Type a ticker to fill the spot from the quote, or enter the spot yourself.
| Leg | Premium | Delta | Theta / day |
|---|---|---|---|
| long 1 put $100.00 / 30d | $2.69 | -0.467 | -$0.042 |
| short 1 put $90.00 / 30d | $0.19 | -0.060 | -$0.014 |
This is a bear put spread. You are long 1 put at $100.00 and short 1 put at $90.00. They all expire in 30 days. The options cost a net debit of $2.50. At expiry it breaks even at $97.50. The most you can make at expiry is $7.50. The most you can lose at expiry is $2.50. Model delta is -0.407. Model theta is -$0.028 per day.
Payoff
At $100.00, expiry P&L -$2.50, today $0.00.
| Stock | At expiry | Today |
|---|---|---|
| $70.00 | $7.50 | $7.47 |
| $76.25 | $7.50 | $7.44 |
| $82.50 | $7.50 | $7.11 |
| $88.75 | $7.50 | $5.51 |
| $95.00 | $2.50 | $2.42 |
| $101.25 | -$2.50 | -$0.48 |
| $107.50 | -$2.50 | -$1.96 |
| $113.75 | -$2.50 | -$2.40 |
| $120.00 | -$2.50 | -$2.49 |
The model uses one volatility for every strike, a flat risk-free rate, and no dividend. A live option quote will differ. Each contract here covers one share. A listed equity contract usually covers 100 shares.