Options strategies › Bear Put Spreads for Downturns
Bear Put Spreads for Downturns
Debit Spread Cyclical Downturns
A bear put spread profits from a decline with defined risk — cheaper than an outright put because the short leg offsets part of the cost — making it a common portfolio hedge into a cyclical downturn.
You expect a cyclical name or sector to fall, and want a defined-risk hedge.
Pillar 1 · Illustrative setup
How this example is built
Buy a put near the money and sell a lower put, paying a net debit that caps the downside profit and cheapens the hedge.
Illustrative inputs only — not live prices.
Open the on-device calculator →
Open the on-device calculator and enter your own strikes and premium — this exact math, with a Plus payoff table.
Pillar 2 · When & why
Why this fits Cyclical Downturns
Used to hedge long equity exposure or express a bearish macro view. Selling the lower put trims the premium of an expensive long put during a pullback, in exchange for capping the profit at the lower strike.
Maximum loss is the debit paid, if the stock closes above the higher strike. The move has to happen before expiration, and a V-shaped bounce leaves the hedge expiring worthless.
Pillar 3 · Risk / reward
The defined-risk math
| Underlying price | Profit / loss |
|---|---|
| 145 | $1,020.00 |
| 152.5 | $1,020.00 |
| 160 | $1,020.00 |
| 167.5 | $270.00 |
| 175 | -$480.00 |
| 182.5 | -$480.00 |
| 190 | -$480.00 |
Profit/loss at expiration — the same numbers the Quickwell calculator produces.