Bear put spread calculator a defined-risk way down
A bear put spread buys a put and sells a lower one, cutting the cost of a bearish position in exchange for a floor on the profit. It is the mirror of a bull call spread, and the usual choice when you expect a decline to a level rather than a collapse.
Outlook: Bearish
Max profit
—
best case at expiry
Max loss
—
worst case at expiry
Breakeven
—
where the trade turns even
Net debit / credit
—
to open the position
Your bear put spread
Per-share premiums. One contract = 100 shares.
100 shares per contract
Profit at expiryLoss at expiryBreakevenStrikes & spot
How a bear put spread pays
Net debit = premium paid − premium collected
Max profit = (strike width − net debit) × 100 × contracts
Max loss = net debit × 100 × contracts
Breakeven = long put strike − net debit
Cheaper than a naked put. The short put offsets part of your premium, which raises your breakeven and reduces the move you need.
Profit stops at the short strike. Below it, further declines change nothing — you have already made the maximum.
Well suited to support levels. If you expect a fall to a level you consider a floor, selling the put at that level costs you little.
Worth naming. The short leg means assignment risk on the way down, and put assignment leaves you long shares. That is a real cash requirement, not a theoretical one, if the position moves against you while both legs are still open.
What this does not model
Every figure here is the payoff at expiry. Before then your position is marked at market prices that still carry time value, so a trade can show a loss while sitting exactly where you wanted it — falling implied volatility alone will do that.
Short legs carry assignment risk. American-style options can be exercised at any time, most commonly on in-the-money calls just before an ex-dividend date. The diagram assumes you hold every leg to expiry.
For the live version — real Greeks, current marks and what-if scenarios against actual
chain data — that is what the GreeksView desk does, in your
browser, on your own broker keys.
Frequently asked questions
What is the maximum profit on a bear put spread?
The strike width minus the net debit, times 100 per contract. Buying the 100 put for $3.80 and selling the 90 for $1.30 is a $2.50 debit on a $10 spread, so the maximum is $750 — realised at or below 90 at expiry.
What is the breakeven on a bear put spread?
The long put's strike minus the net debit: 100 − 2.50 = $97.50 in the example. The stock has to be below that at expiry for the trade to make money.
How is this different from just buying a put?
It costs less and breaks even sooner, but caps your profit at the short strike. Buying the put outright keeps all the downside — worth it if you expect a genuine collapse, wasteful if you expect a move to a specific level.
Can I be assigned early on the short put?
Yes. A short put that goes deep in the money can be assigned at any time, leaving you long 100 shares per contract and needing the cash to pay for them. Your long put still protects the position's value, but the cash requirement arrives immediately.
Are commissions included in these numbers?
No — every figure is gross. On multi-leg positions this matters more than people expect: four legs to open and four to close is eight commissions against what may be a couple of hundred dollars of credit. Check your broker's per-contract rate against the max profit shown here before deciding a trade is worth putting on.
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