Risk: Medium (limited to debit paid)BearishIntermediate
Bear Put Spread
Cost-efficient downside strategy with profit potential
The bear put spread is the bearish equivalent of the bull call spread. You buy a put with a higher strike and simultaneously sell a put with a lower strike. The sold put significantly reduces the net debit. This strategy profits from declining prices down to the short put strike. Maximum loss is the debit paid; maximum profit is the spread width minus debit.
Risk
Medium (limited to debit paid)
Market view
Bearish
Complexity
Intermediate
Underlyings
30
Advantages
- Cheaper than a single long put (short put finances premium)
- Clearly defined maximum loss (debit paid)
- Fully participates in price decline down to the short strike
- Defined risk-reward profile
Risks
- Maximum profit capped (decline below short strike not captured)
- Time decay works against you
- Two option transactions increase transaction costs
- IV increase helps, but not as strongly as with a single long put
Timing
When to Use
1Bearish outlook with a clearly defined downside price target
2IV currently elevated — short put significantly reduces IV premium
3Cheaper alternative to buying a direct put
4Price target near the short put strike
5No upcoming positive event (earnings with bullish guidance expected)
240 examples
Bear Put Spread on 30 underlyings
Each stock with its own example trade, strikes, premium, break-even, and interactive payoff diagram.
German & European stocks
· tradeable on Eurex
SAP
SAP
TechLow IVIV 18–30%
View example
ASML
ASML
TechMedium IVIV 26–48%
View example
Siemens
SIE.DE
IndustrialsLow IVIV 17–28%
View example
Allianz
ALV.DE
FinanceLow IVIV 14–25%
View example
BMW
BMW.DE
AutoMedium IVIV 22–38%
View example
Mercedes
MBG.DE
AutoMedium IVIV 20–35%
View example
Deutsche Bank
DBK.DE
FinanceHigh IVIV 28–55%
View example
Adidas
ADS.DE
ConsumerMedium IVIV 22–38%
View example
Deutsche Telekom
DTE.DE
TelecomVery low IVIV 14–22%
View example
BASF
BAS.DE
MaterialsMedium IVIV 22–38%
View example
US stocks
· high options liquidity
Apple
AAPL
TechLow IVIV 20–32%
View example
NVIDIA
NVDA
TechHigh IVIV 40–80%
View example
Tesla
TSLA
AutoVery high IVIV 50–95%
View example
Amazon
AMZN
ConsumerMedium IVIV 25–42%
View example
Meta
META
TechHigh IVIV 28–55%
View example
Microsoft
MSFT
TechLow IVIV 18–30%
View example
Alphabet
GOOGL
TechMedium IVIV 22–38%
View example
AMD
AMD
TechHigh IVIV 40–70%
View example
Palantir
PLTR
TechVery high IVIV 55–90%
View example
Netflix
NFLX
ConsumerHigh IVIV 30–60%
View example
JPMorgan
JPM
FinanceMedium IVIV 20–34%
View example
Bank of America
BAC
FinanceMedium IVIV 24–40%
View example
Goldman Sachs
GS
FinanceMedium IVIV 22–36%
View example
ExxonMobil
XOM
EnergyMedium IVIV 20–34%
View example
Coinbase
COIN
FinanceVery high IVIV 65–120%
View example
Visa
V
FinanceLow IVIV 16–26%
View example
Disney
DIS
ConsumerHigh IVIV 25–42%
View example
MicroStrategy
MSTR
Crypto-ProxyVery high IVIV 85–160%
View example
Index ETFs
· highest liquidity worldwide
FAQ
Frequently Asked Questions
When is a bear put spread better than a single long put?
A bear put spread beats a long put when (a) IV is high and puts are expensive — the short put significantly reduces costs; (b) you have a specific downside target and don't need exposure to extreme scenarios; (c) you want clearly capped loss risk. A single long put pays off more when betting on a very strong, unexpected crash.
How do I select strikes for a bear put spread?
Buy the put at or near the current price (ATM to slightly OTM). Sell the put at your downside target — typically 5-10% below the current price. Wider spreads cost more but have more profit potential. With strongly elevated IV, narrower spreads reduce costs effectively.
How does implied volatility affect bear put spreads?
Rising IV helps bear put spreads as puts gain in value. The effect is smaller than with a single long put, however, because the short put also gains value. In strongly falling markets, IV often rises (fear index), which disproportionately benefits the bear put spread. Ideally open bear put spreads before the IV spike begins.
When should I take profits on a bear put spread?
Close at 50-75% of maximum profit — at this point you have captured most of the profitable move with still manageable gamma risk. If the stock has fallen sharply and quickly, early closing can make sense to lock in gains before a reversal. Never hold the position until close to expiration when you're already 70%+ in profit.
What is the maximum profit and loss on a bear put spread?
Maximum profit = (long strike − short strike − net debit) × 100. Example: put 100 purchased, put 90 sold, debit 3 → max profit = (100 − 90 − 3) × 100 = $700. Maximum loss = net debit × 100 = $300. Maximum loss occurs when price is above the long strike at expiration; maximum profit when it is below the short strike.
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