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

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)

65 examples

Bear Put Spread on 65 underlyings

Each stock with its own example trade, strikes, premium, break-even, and interactive payoff diagram.

German & European stocks

· tradeable on Eurex

TechMedium IVIV 26–48%

IndustrialsLow IVIV 17–28%

FinanceLow IVIV 14–25%

AutoMedium IVIV 22–38%

AutoMedium IVIV 20–35%

FinanceHigh IVIV 28–55%

ConsumerMedium IVIV 22–38%

TelecomVery low IVIV 14–22%

MaterialsMedium IVIV 22–38%

IndustrialsHigh IVIV 35–60%

View example

Lufthansa

LHA.DE

IndustrialsMedium IVIV 30–45%

ConsumerHigh IVIV 35–55%

AutoMedium IVIV 25–40%

AutoMedium IVIV 25–40%

EnergyHigh IVIV 35–55%

IndustrialsLow IVIV 20–32%

EnergyLow IVIV 20–30%

EnergyMedium IVIV 25–38%

FinanceMedium IVIV 28–42%

FinanceLow IVIV 18–28%

View example

US stocks

· high options liquidity

AutoVery high IVIV 50–95%

View example

Amazon

AMZN

ConsumerMedium IVIV 25–42%

TechMedium IVIV 22–38%

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

FinanceMedium IVIV 22–36%

View example

ExxonMobil

XOM

EnergyMedium IVIV 20–34%

View example

Coinbase

COIN

FinanceVery high IVIV 65–120%

View example

Visa

FinanceLow IVIV 16–26%

View example

Disney

DIS

ConsumerHigh IVIV 25–42%

View example

MicroStrategy

MSTR

Crypto-ProxyVery high IVIV 85–160%

View example

Novo Nordisk

NVO

ConsumerMedium IVIV 30–52%

View example

Rivian

RIVN

AutoVery high IVIV 60–100%

View example

Supermicro

SMCI

TechVery high IVIV 55–100%

View example

Rocket Lab

RKLB

IndustrialsVery high IVIV 60–110%

View example

IonQ

IONQ

TechVery high IVIV 70–130%

View example

Plug Power

PLUG

EnergyVery high IVIV 70–120%

View example

Robinhood

HOOD

FinanceHigh IVIV 45–75%

View example

Ford

AutoMedium IVIV 30–45%

View example

Boeing

IndustrialsHigh IVIV 30–50%

TechMedium IVIV 30–45%

View example

Broadcom

AVGO

TechMedium IVIV 30–45%

View example

Qualcomm

QCOM

TechMedium IVIV 30–45%

View example

Chevron

CVX

EnergyLow IVIV 22–35%

View example

GameStop

GME

ConsumerVery high IVIV 80–180%

View example

AMC

ConsumerVery high IVIV 90–200%

View example

Lucid

LCID

AutoVery high IVIV 70–120%

View example

NIO

AutoVery high IVIV 60–100%

View example

SoFi

SOFI

FinanceHigh IVIV 50–80%

View example

MARA

Crypto-ProxyVery high IVIV 80–140%

View example

Riot

RIOT

Crypto-ProxyVery high IVIV 80–140%

View example

CleanSpark

CLSK

Crypto-ProxyVery high IVIV 90–150%

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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