Bear Put Spread
Computes the outcome of a bear put spread: buying a higher-strike put and selling a lower-strike put, paying a debit. It's a bearish bet with limited risk and cost — cheaper than buying the put alone, in exchange for a capped profit. The tool returns the cost (debit), the maximum profit, the maximum loss and the breakeven. Enter the two strikes and the respective put premiums.
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Bear Put Spread
Computes the outcome of a bear put spread: buying a higher-strike put and selling a lower-strike put, paying a debit. It's a bearish bet with limited risk and cost — cheaper than buying the put alone, in exchange for a capped profit. The tool returns the cost (debit), the maximum profit, the maximum loss and the breakeven. Enter the two strikes and the respective put premiums.
Betting on a fall without overpaying for the put
Buying a put to bet on a fall works, but the premium usually stings. The bear put spread cuts that cost: you buy the put you want and sell another at a lower strike to offset part of the premium. The result is a cheaper bearish bet, with the trade-off of a profit that stops at the sold strike.
It's a fully defined-risk structure. The maximum loss is the debit paid, nothing beyond it, and the maximum profit is the distance between the strikes minus that debit. It works well when you expect a moderate fall and want to avoid the theta bleed a naked put would suffer if the move took its time.
Enter the two strikes and the put premiums (the bought one, pricier, and the sold one, cheaper). The tool returns the cost, the maximum profit, the maximum loss and the breakeven. The further apart the strikes, the bigger the potential profit and the higher the setup cost.
Related Tools
Bull Put Spread
Computes the outcome of a bull put spread: selling a higher-strike put and buying a lower-strike put, collecting a credit. It's a bullish (or neutral) bet that pockets the premium with risk capped by the bought put. The tool returns the credit received (maximum profit), the maximum loss and the breakeven. Enter the two strikes and the respective put premiums.
Calendar Spread
Computes the net debit of a calendar spread, also called a horizontal spread: selling a short-dated option and buying a longer-dated one at the same strike. The strategy exploits the fact that the short option loses value to time (theta) faster than the longer one. The result is the cost of setting up the position. Enter the premium of the short option sold and that of the long option bought.
Long Call Condor
Computes the outcome of a long call condor: buy one low-strike call, sell two middle-strike calls and buy one high-strike call. It's a cousin of the butterfly with a wider profit zone: you bet the asset will stay within a range rather than land exactly on a point. The tool returns the net cost, the maximum profit, the maximum loss and the two breakeven points. Enter the four strikes and the four call premiums.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.