Put Bear Spread

Put Bear Spread PnL Graph

B/SStrikeTypePrice
Sell 1$29Put$0.44
Buy 1$31Put$1.46
Net Debit$102

A Put Bear Spread is buying a put option while selling a put option with a lower strike price. Both options are in the same expiration month.

The Max Loss is limited to the net amount paid for the spread. I.e. the premium paid for the long put less the premium received for the short put.

The Max Gain is limited to the difference between the two strike prices minus the net premium paid for the position.

Characteristics

When to use: When you are bearish on market direction.

A Put Bear Spread has the same payoff as the Call Bear Spread as both strategies hope for a decrease in market prices. The main difference between the two is that the put spread version is a debit spread (you pay money to put the trade on) whereas the call version is a credit spread (you receive the premium up front).

Put Bear Spread Greeks

Delta

Put Bear Spread Delta Graph - 30 Days to Expiration
Put Bear Spread Delta Graph - 3 Days to Expiration

Gamma

Put Bear Spread Gamma Graph - 30 Days to Expiration
Put Bear Spread Gamma Graph - 3 Days to Expiration

Vega

Put Bear Spread Vega Graph - 30 Days to Expiration
Put Bear Spread Vega Graph - 3 Days to Expiration

Theta

Put Bear Spread Theta Graph - 30 Days to Expiration
Put Bear Spread Theta Graph - 3 Days to Expiration

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