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 |
Research that fits this view
Our latest Sell-rated company research, for readers who want to see the thinking behind a bearish view. This is a link to research, not a trade idea.
- BFLY: Strong Sell-rated research (published 2026-11-02)
- ENPH: Strong Sell-rated research (published 2026-10-31)
- VKTX: Strong Sell-rated research (published 2026-10-29)
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.
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