Options / Bear put spread
Payoff at expiry for a generic example with the stock at 100. Green is profit, red is loss, dashed lines are break-even prices.
You buy a put and sell a lower-strike put with the same expiry. The sold put lowers your cost and caps your gain.
When it is used: When you expect a moderate fall and want a cheaper trade than a single put.
Main risk: You lose the net cost if the stock finishes above the higher strike. The gain stops at the lower strike.
- Net cost
- $300 per contract
- Max gain
- +$700
- Max loss
- -$300
- Break-even
- 97.0
- Legs
- 2
The legs in this example
| Action | Contract | Strike | Example price |
|---|---|---|---|
| Buy | 1 put | strike 100 | $4.50 per share |
| Sell | 1 put | strike 90 | $1.50 per share |
The Greeks for this strategy
The Greeks measure what moves the price of an option. The values below are model estimates for the generic example (stock at 100, 40% volatility, three months to expiry), only to show the direction of each effect.
| Greek | What it measures | This example | What it means here |
|---|---|---|---|
| Delta | How much the position gains or loses for a $1 move in the stock, per 100 shares. | -19 shares | Gains when the stock falls. |
| Gamma | How fast delta changes as the stock moves. | +0.35 | Little change in delta. |
| Theta | Value gained or lost each day from time passing, all else equal. | -0.76 $/day | Time has little effect. |
| Vega | Change in value for a one-point rise in implied volatility. | +3.46 $/pt | Rising implied volatility helps you. |
Research that fits this view: expected prices vs today
Our latest Sell-rated company research with the price ranges we set when we published, compared with the latest closing price. These are links to research, not trade ideas. Links open in a new tab.
| Research | Published | Price at publish | Price now | Change | Our 3-month range | Our 6-month range | Price vs 3-month range |
|---|---|---|---|---|---|---|---|
| BFLY: Strong Sell-rated research | 2026-11-02 | $6.14 | $6.40 close 2026-11-03 | +4.2% | $2.74 – $8.47 | $1.93 – $9.52 | inside range |
| ENPH: Strong Sell-rated research | 2026-10-31 | $27.93 | $30.42 close 2026-11-03 | +8.9% | $14.99 – $31.36 | $14.99 – $34.08 | inside range |
| VKTX: Strong Sell-rated research | 2026-10-29 | $26.86 | $26.09 close 2026-11-03 | -2.9% | $17.50 – $28.50 | $15.00 – $27.50 | inside range |
| EVH: Strong Sell-rated research | 2026-10-27 | $4.42 | $4.30 close 2026-11-03 | -2.7% | $2.60 – $4.50 | $2.10 – $4.20 | inside range |
| TPL: Strong Sell-rated research | 2026-10-27 | $330.43 | $332.00 close 2026-11-03 | +0.5% | $236.84 – $362.00 | $220.00 – $350.00 | inside range |
| CRSP: Strong Sell-rated research | 2026-10-26 | $49.01 | $49.99 close 2026-11-03 | +2.0% | $32.00 – $44.00 | $28.00 – $44.00 | above range |
Results for this strategy
We track our own hypothetical examples privately and publish each result at least 30 days after the play has closed, wins and losses together, once there are enough closed plays to say something. None have closed yet. This table will list every closed play with its expiry result and a link to the research it came from.
Back to all option strategies · How we track results