Bear put spread
The same trade pointed down: buy a put, sell a lower one.
The view: Down, to a level you can name.
Construction
| Leg | Qty | Strike at 100 spot |
|---|---|---|
| Long put | 1 | 100 |
| Short put | 1 | 90 |
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- Max profit
- +750
- Max loss
- -250
- Breakeven
- 97.5
- Net cash
- -250
When it fits
A bearish view with a floor in mind — support, a valuation, a level you do not expect to break. Cheaper than the outright put for the same reason.
What goes wrong
- Capped at the lower strike, so a crash pays no more than a slide.
- Still a debit: you can lose the whole premium.
- Short put legs can be assigned early if they go deep in the money.
Try it properly
The chart above is the real pricing model, limited to three sliders. To change strikes, add legs, switch to futures, or price it against your own volatility assumption, open it in the options P&L calculator — the link under the chart carries this exact position across.
Education, not advice. Payoffs ignore commission, bid-ask spread, assignment risk and financing.