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Chapter 3. Vertical Spreads > Bear Put Spread

3.2. Bear Put Spread

ProficiencyDirectionVolatilityAsset LegsMax RiskMax RewardStrategy Type
N/A+
IntermediateBearish • Short PutCappedCappedCapital Gain
   • Long Put   


3.2.1. Description

The Bear Put is a vertical spread strategy that creates a net debit in your account. You buy a near the money long-term (typically over six months to expiration) put and sell a lower strike (typically OTM) put with the same expiration.


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