Bear Put Spread Calculator
Model a bear put spread with two strikes. See net debit, max profit, max loss, and the full payoff diagram.
A bearish debit spread: buy a put at a higher strike and sell a put at a lower strike. Limits both your max profit and max loss. Cheaper than a naked long put.
Strategy Legs
How to Calculate a Bear Put Spread
A bear put spread is a debit spread that profits from a moderate decline in the stock. You buy a put at a higher strike and sell a put at a lower strike, both with the same expiration. The sold put reduces your cost but caps your downside profit at the lower strike.
This is the bearish counterpart to a bull call spread. Use it when you expect a stock to drop to a specific level — a support zone, previous low, or downside target — but not much further. It's cheaper and has a lower breakeven than buying a naked put.
The calculator shows the net debit (your cost and max loss), max profit (spread width minus debit), and breakeven. The P&L chart shows capped profit below the lower strike, rising profit between strikes, and flat max loss above the upper strike.
Formula
Net Debit = Higher Put Premium − Lower Put Premium. Max Profit = (Higher Strike − Lower Strike − Net Debit) × 100. Max Loss = Net Debit × 100.
Example
NVDA is at $900 and you expect a pullback to $880. You buy the $900 put for $15.00 and sell the $880 put for $8.00.
Net debit = $15 − $8 = $7.00 ($700 per spread). Max profit = ($900 − $880 − $7) × 100 = $1,300. Max loss = $700. Breakeven = $900 − $7 = $893. If NVDA drops to $880 or below, you make $1,300 on a $700 bet — an 86% return.
Frequently Asked Questions
When is a bear put spread better than buying a put?
When you have a specific downside target rather than expecting a crash. If you think a stock will drop from $100 to $90 but not much further, a $100/$90 bear put spread captures that move at a lower cost than a naked $100 put. If you think a stock could collapse 50%+, a naked put captures more of that move.
Can I close a bear put spread before expiration?
Yes. You close both legs simultaneously — buy back the short put and sell the long put. If the stock has dropped near the lower strike, the spread will be worth close to its max value and you can lock in most of the profit without waiting for expiration. Early exit also avoids assignment risk on the short put.
What's the difference between a bear put spread and a bear call spread?
A bear put spread is a debit strategy — you pay upfront and profit from a decline. A bear call spread is a credit strategy — you receive premium upfront and profit if the stock stays below the short call strike. Bear put spreads have a higher probability of profit for the same risk level but cost more to enter.
Related Calculators
Long Put Options Calculator
Calculate max profit, max loss, and breakeven for a long put position. Visualize downside profit potential at expiration.
Bull Call Spread Calculator
Model a bull call spread with two strikes. See net debit, max profit, max loss, and the P&L payoff diagram.
Options Profit Calculator
Build any multi-leg options strategy and see the full P&L chart at expiration. Calls, puts, spreads — all visualized.
Related Articles
What Is Options Trading and How Does It Work?
Learn how to trade options the right way. This beginner-friendly step-by-step guide covers option basics, strategies, and risk management.
15 Proven Day Trading Strategies For A Profitable Trade
Want to trade like a pro? Here are 15 daytrading strategies to help you spot opportunities, manage risks and win the market.
TastyTrade
$0 commissions on stocks. $1/contract on options.
Built by traders, for traders. TastyTrade offers commission-free stock trading, $1 options contracts (capped at $10/leg), and a platform designed for active traders.
We may earn a commission if you open an account through our link. This does not affect our recommendations.
Disclaimer: This calculator is for educational purposes only and does not constitute financial advice. Trading involves substantial risk of loss. Past performance does not guarantee future results. Always do your own research and consult with a licensed financial advisor before making investment decisions.