Bear Put Spread
In plain English
The mirror of a bull call spread, for a fall. You buy a put and sell a lower put to cut the cost. You profit if the price drops to your target, with a known maximum loss.
How it's built
Buy a put and sell a lower-strike put — a defined-risk bearish play.
Illustrative payoff at expiry on a NIFTY-like underlying (spot 24,000, 7d, 13% IV). The shape is the point — open it in the Strategy Lab to tune spot, time and volatility live.
Max profit₹5,778
Max loss₹3,972
Net premiumDr ₹3,972
Breakevens23,939
When to use it
Moderately bearish with a downside target.
Max profit
Capped at (spread width − net debit).
Max loss
Limited to the net debit paid.
Common mistakes
- Paying too much net debit relative to the width.