Bear put spread on Bank Nifty
Buy a put and sell a lower-strike put with the same expiry. A cheaper way to take a falling view than a single put, with capped gains. Shown per lot of 30 with illustrative numbers.
Contract basics. Bank Nifty lot size: 30. Bank Nifty has monthly options only (last Tuesday of the month), so this example uses 25 days to expiry. Strikes in this example are rounded to the 100-point strike interval.
A structure for a view that the index will fall moderately by expiry, with a known maximum loss.
| Leg | Premium per unit | Cash flow |
|---|---|---|
| Buy 1 lot 55,000 PE | ₹799.70 | −₹23,991 |
| Sell 1 lot 52,700 PE | ₹146.42 | +₹4,393 |
Profit and loss at expiry
For the whole position, before charges.
Premiums are theoretical Black–Scholes values from round, illustrative inputs, not market prices. Charges and margin are not included.Price a single leg with your own numbers.
Frequently asked questions
What is the maximum loss of a bear put spread on Bank Nifty?
In this illustrative example, ₹19,598 per set of legs (lot size 30), before charges.
What is the lot size of Bank Nifty options?
30 units per lot at the time of writing. Lot sizes are revised by the exchange from time to time; check the current size before trading.
When do Bank Nifty options expire?
Bank Nifty has monthly options only (last Tuesday of the month), so this example uses 25 days to expiry.
What is the maximum loss on a bear put spread?
The net premium paid plus charges, if the index ends at or above the higher strike.
How is a bear put spread different from buying a put?
It costs less and has a lower break-even move, but the profit stops growing below the lower strike.