# Bear Put Spread > A bear put spread buys a put and sells a lower strike put to cut cost and cap profit. Learn the payoff, break even, strike choice and use as a hedge. Source: https://learn.tradelabsai.com/options/bear-put-spread/ Track: Options · Level: Advanced · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Bear Put Spread", https://learn.tradelabsai.com/options/bear-put-spread/ A bear put spread, also called a long put spread or put debit spread, buys a put at one strike and sells a put at a lower strike with the same expiration. The sold put lowers the cost of the bought put but caps the profit if the underlying falls below the lower strike. It is a bearish strategy with a defined maximum loss and gain. Traders use it to bet on a moderate decline, and investors use it as a cheaper hedge than buying puts outright. ## Construction 1. **Buy a put** at a higher strike (often at or near the money). 2. **Sell a put** at a lower strike (near your downside target). 3. **Same underlying and expiration.** 4. **Pay a net debit.** ## Payoff at a glance | Feature | Bear put spread | |---|---| | Outlook | Moderately bearish | | Maximum loss | Net debit | | Maximum gain | Strike width minus net debit | | Break even at expiry | Higher strike minus net debit | | Implied volatility | Small net effect | ## Worked example **Example: Betting on a pullback** A stock trades at $80 after a strong run. You expect a pullback to about $72 over the next month. Buy the $80 put for $3.40 and sell the $72 put for $1.00. Net debit: $2.40 ($240 per spread). | Stock at expiry | Profit or loss per spread | |---|---| | $85 | minus $240 | | $77.60 | $0 (break even) | | $75 | +$260 | | $72 or below | +$560 (maximum: $8 width minus $2.40) | Buying only the $80 put would cost $340 and make more if the stock collapsed far below $72, but it costs $100 more and breaks even lower, at $76.60. ## As a hedge A put spread protects a portfolio within a range of decline at lower cost than a single put. **Example: Hedging an index position** You hold $100,000 in an index fund tracking an index at 5,000. Rather than buying 5% out of the money puts for 1.6% of the portfolio, you buy a put spread: long the 4,750 put and short the 4,250 put, for about 0.9% of the portfolio. The spread covers losses between a 5% and a 15% decline. Beyond 15%, losses are no longer covered. You trade crash protection for cheaper cover of the more common moderate declines. See [Protective Put](https://learn.tradelabsai.com/options/protective-put/). ## Why choose a bear put spread - **Cheaper than a long put,** with a closer break even. - **Defined risk,** unlike short selling. See [Short Selling](https://learn.tradelabsai.com/markets/short-selling/). - **Muted volatility exposure:** buying puts after a selloff is expensive because implied volatility is high; selling the lower put recovers some of that inflated premium. See [Volatility Smile and Skew](https://learn.tradelabsai.com/volatility/volatility-smile-and-skew/). ## Choosing strikes and expiry - **Long put** at or slightly below the current price for responsiveness. - **Short put** at a realistic downside target such as support. See [Support and Resistance](https://learn.tradelabsai.com/price-action/support-and-resistance/). - **Expiry** long enough for the decline to play out; declines can be sudden but often come after delays. ## Managing the trade - **Take profits** when the target is reached, before expiration. - **Close before expiry** if price sits between the strikes. - **Watch for early assignment** on the short put if it goes deep in the money; you would buy shares, still protected by the long put. See [Exercise and Assignment](https://learn.tradelabsai.com/options/exercise-and-assignment/). - **Roll down** to lower strikes if the decline continues and you stay bearish. ## Bear put spread vs bear call spread A bear call spread also profits from a decline but is opened for a credit. The two have nearly identical payoffs at the same strikes. Debit spreads benefit when price moves; credit spreads benefit when price simply stays below the short strike. See [Bear Call Spread](https://learn.tradelabsai.com/options/bear-call-spread/) and [Vertical Spreads](https://learn.tradelabsai.com/options/vertical-spreads/). ## Common mistakes - **Placing the short strike too close,** capping profit too early. - **Buying puts and put spreads after big selloffs,** when premiums are inflated. - **Using too short an expiry.** - **Forgetting the hedge only covers a range.** ## Frequently asked questions ### What is a bear put spread? Buying a put and selling a lower strike put with the same expiry to profit from a moderate decline with limited risk. ### What is the break even of a bear put spread? The higher strike minus the net debit paid. ### When should I use a bear put spread instead of buying a put? When you expect a moderate decline to a target and want a lower cost and closer break even, accepting capped profit. Next, learn to collect premium with a bullish credit spread in [Bull Put Spread](https://learn.tradelabsai.com/options/bull-put-spread/). ## Continue learning - Next lesson: [Bull Put Spread](https://learn.tradelabsai.com/options/bull-put-spread/) - Previous lesson: [Bull Call Spread](https://learn.tradelabsai.com/options/bull-call-spread/) - Related: [Bull Call Spread](https://learn.tradelabsai.com/options/bull-call-spread/): A bull call spread buys a call and sells a higher strike call to cut cost and cap profit. Learn the payoff, break even, strike selection and how to manage it. - Related: [Long Put](https://learn.tradelabsai.com/options/long-put/): A long put is buying a put option to profit from a decline or to hedge. Learn the payoff, break even, long put vs short selling and how to choose strikes. - Related: [Bear Call Spread](https://learn.tradelabsai.com/options/bear-call-spread/): A bear call spread sells a call and buys a higher strike call for a credit. Learn the payoff, how it caps short call risk, strike choices and trade management. - Related: [Vertical Spreads](https://learn.tradelabsai.com/options/vertical-spreads/): A vertical spread buys and sells options of the same type and expiry at different strikes. Learn debit vs credit spreads, the four types and how to choose widths. - Related: [Protective Put](https://learn.tradelabsai.com/options/protective-put/): A protective put buys a put on shares you own to limit downside. Learn the payoff, what protection costs, how to choose strikes and when hedging makes sense. - Related: [Hedging](https://learn.tradelabsai.com/markets/hedging/): Hedging means taking a position that offsets the risk of another. Learn how hedges work with options, futures and correlated assets, their costs and limits.