What is a bear put spread, in plain words?
A bear put spread is buying a put and selling a put with a lower strike, with the same expiry 1. The put sold pays for part of the put bought. The most it can lose is what the spread cost; the most it can make is the gap between the strikes minus that cost; it breaks even at the higher strike minus the cost 2.
A $50 put bought and a $45 put sold, both with 30 days left at 30% implied volatility (made-up numbers). Move where the stock ends at expiry.
In numbers
By the formula the $50 put costs $1.63 and the $45 put sells for $0.20 3, so the spread costs $1.43 a share, $143 a contract. It can make at most $5 − $1.43 = $3.57 a share, can lose at most $1.43, and breaks even at $48.57 2, against $48.37 for the $50 put alone.
The trade-off
Cheaper than the put alone, in exchange for giving up any further gain if the stock falls below $45 1.
What this shows, and what it doesn't
The result at expiry, a share, before fees and the bid-ask spread on two options. The put sold can be exercised against you before expiry: you would then have to buy 100 shares at $45 4. The prices come from a formula for options exercised only at expiry 3.
Go further
Sources (4), checked 20 October 2026 and 27 October 2026
- Fidelity, “Options strategy: The bear put spread” (Viewpoints). Read it (read 27 October 2026)
- Montréal Exchange, “Bear Put Spread” (strategy sheet). Read it (read 27 October 2026)
- Fischer Black and Myron Scholes, “The Pricing of Options and Corporate Liabilities”, Journal of Political Economy 81(3), 637–654, 1973. Read it (read 20 October 2026)
- FINRA, “Trading Options: Understanding Assignment” (14 December 2020). Read it (read 27 October 2026)
Now try it on a scenario of your own
Pick where a simulated stock might be, and by when: drag one dot and see, side by side, what buying shares, one option, or a pair of options (a call or put spread) would each do. Free, no sign-up.
Check a trade before you make it →