Bear Put Spread Calculator

A bear put spread buys a put and sells a lower-strike put on the same expiry. The short put reduces the cost and caps the gain at the lower strike. The maximum loss is the net debit, and the maximum gain is the distance between the strikes minus that debit, both fixed at entry.

When it is used

The spread fits a moderately bearish view with a downside target, and it is the usual way to be short a stock through options when puts are expensive. Puts tend to carry higher implied volatility than calls, so selling the lower put returns a good part of the premium. It is also common as a hedge sized to a specific decline rather than a crash.

How it makes and loses money

The stock falling toward the short strike is what pays. Time decay hurts while the stock is above the long strike and helps once it is below the short strike, so the position changes character as the stock moves. A fall in implied volatility costs the long put more than it saves on the short one when the stock is still near the entry price.

What to check in the grid

Compare the row at the short strike across dates. The spread shows only part of its maximum value until expiry, so an early target can be a reason to close rather than wait. Then compare two widths: a wider spread costs more but pays more per dollar of decline.