Bear Put Spread
Limited risk, limited reward bearish strategy using two puts.
Intermediate
Market Outlook
bearish
Family
vertical
Capital Req
medium
Risk Profile
neutral
Strategy Overview
Key characteristics and when to use
Structure
Buy Put + Sell Lower Strike Put
Greek Profile
Negative delta, mixed theta, limited vega exposure
Characteristics
DebitBearishIntermediateLimited Risk
Profit & Loss Formulas
Mathematical breakdown
Max Profit
Difference in strikes - net debit paid
Max Loss
Net debit paid
Breakeven
Higher strike - net debit paid