Bear put spread on Sensex
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 20 with illustrative numbers.
Contract basics. Sensex lot size: 20. Sensex has weekly options on BSE expiring every Thursday, so this example uses 7 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 82,000 PE | ₹538.90 | −₹10,778 |
| Sell 1 lot 80,500 PE | ₹101.35 | +₹2,027 |
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 Sensex?
In this illustrative example, ₹8,751 per set of legs (lot size 20), before charges.
What is the lot size of Sensex options?
20 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 Sensex options expire?
Sensex has weekly options on BSE expiring every Thursday, so this example uses 7 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.