Bear Put Spread Calculator
Calculate max profit, max loss, and breakeven for a bear put spread.
Enter the two strike prices and net premium to see the full P&L diagram at expiration.
Max Profit
Bear Put Spread
A bear put spread is a defined-risk options strategy used when you are moderately bearish on a stock. You buy a put at a higher strike (K1) and sell a put at a lower strike (K2) with the same expiration. The premium received for the sold put reduces the cost of the bought put.
Key levels:
| Metric | Formula |
|---|---|
| Net Premium Paid | Buy premium - Sell premium |
| Breakeven at Expiry | Higher strike (K1) - Net premium paid |
| Max Profit | (K1 - K2 - Net premium) × 100 per contract |
| Max Loss | Net premium paid × 100 per contract |
P&L at expiration:
- Stock at or above K1: Full net premium lost (max loss)
- Stock between K1 and K2: Partial profit — (K1 - S - Net premium) × 100
- Stock at or below K2: Maximum profit locked in
Example:
- Buy 150 put at $7.00, sell 140 put at $2.50
- Net premium = $7.00 - $2.50 = $4.50 per share ($450 per contract)
- Breakeven = 150 - 4.50 = $145.50
- Max profit = (150 - 140 - 4.50) × 100 = $550 per contract
- Max loss = $450 per contract
Bear put spread vs buying a put outright:
- Costs less — the sold put offsets part of the premium
- Defined risk and defined reward — you know your maximum loss upfront
- Tradeoff: you cap your profit at K2 (you give up gains below that level)
When to use it:
- You expect a moderate decline — not a crash
- Implied volatility is expensive — selling a put lowers your cost basis
- You want defined risk rather than unlimited downside protection
Compare to Bull Call Spread: Both are vertical debit spreads. Bull call spread profits from a rise; bear put spread profits from a decline. Both have defined max profit and max loss before entry.