Bear Put Spread (Put Debit Spread)
Buy a higher ATM Put and sell a lower OTM Put to reduce trade cost, neutralize theta decay, and capture defined-risk downside profits.
Interactive Payoff Curve & Greeks Simulation
Visualize the theoretical profit & loss at expiry vs T+0 immediate day curves. Drag the simulation slider to stress-test your trade.
Option Payoff Curve & Greeks
Net Option Greeks (Sensitivity Profile)
Values per 1 Lot standard unitMulti-Leg Position Structure (2 Legs)
| Action | Instrument / Strike | Type | Expiry | Approx Delta | Est. Premium | Qty Ratio |
|---|---|---|---|---|---|---|
| BUY | 24,500 PE (ATM) | PUT | Monthly Expiry | -0.50 | ₹260 | 1x |
| SELL | 24,000 PE (OTM) | PUT | Monthly Expiry | -0.25 | ₹110 | 1x |
How the Structure Works
If the market crashes below the lower strike, you achieve maximum profit. If the market rallies against you, your maximum loss is strictly capped at the net debit.
The Bear Put Spread is the quintessential defined-risk bearish strategy. By selling a lower strike Put to finance your higher strike Put, you reduce trade cost by 40-50%, lower your breakeven threshold, and protect your capital from theta decay.
Institutional Strike Selection Rules
Phased Execution Blueprint
Follow this structured sequence to eliminate emotional hesitation during order entry, lifecycle management, and final exit.
Bearish Breakdown Setup
Deploy on technical breakdowns below key daily moving averages.
Interactive Margin & Position Size Calculator
Calculate exact lot sizing based on the 1-2% risk rule to preserve capital against Black Swan events.
Options Position Size & Max Risk Calculator
Total net liquid equity in your brokerage account
Recommended: 1.0% - 2.0% for disciplined longevity
Wing width max loss or defined mental/system SL
Rigorous Risk Rules & Adjustment Protocols
Non-negotiable parameters for stop-loss triggers, portfolio caps, and firefighting adjustments when market tests your strikes.
- Roll down if market collapses early.
Defined risk structure; margin protected.
NIFTY 24500/24000 Bear Put Spread Trade Walkthrough
Nifty broke 24,500 support.
Bought 24,500 PE @ ₹260 / Sold 24,000 PE @ ₹110 (Net Debit = ₹150 = ₹3,750 on 25 qty)
- Captured 500 pt drop with zero theta panic.
Common Mistakes to Avoid
Why it happens: Collects almost zero credit, failing to offset theta.
Solution: Keep short put within 400-600 points of ATM.
Institutional Pro Tips
Bear Put Spread (Put Debit Spread) FAQs
What is the maximum profit on a Bear Put Spread?
Strike Width minus Net Debit Paid.
Alternative & Complementary Strategies
Buy a Put option to profit from sharp downward price collapses with strictly capped risk and huge asymmetric downside leverage.
Sell a lower OTM Call and buy a higher protective Call to collect upfront credit with strictly defined maximum risk.
Sell 1 ATM/OTM Put and buy 2 (or more) lower OTM Puts to finance a massive asymmetric crash payoff with zero upside risk.