Bear Put Spread
Buy higher strike Put, sell lower strike Put
Positions in Chart: Buy 1 lot of 25800 PE, Sell 1 lot of 25600 PE. Spot price: 25800
Setup
Buy higher strike ATM Put + Sell lower strike OTM Put
When to Use
- Moderate bearish outlook with limited risk
Market Outlook
Risk & Reward
Strategy Details
Description
A bear put spread involves buying a put option at a higher strike price and selling another put option at a lower strike price. Both options have the same expiration date
Example
If NIFTY is at ₹25,800, you might buy a ₹25,800 Put for ₹110 and sell a ₹25,600 Put for ₹70, creating a net debit of ₹40. Maximum profit is ₹160 (₹200 strike difference - ₹40 net premium).
This information is for educational purposes only and should not be considered as financial advice. Always consult with a qualified financial advisor before making investment decisions. Data is constructed and is not actual. Calculations may have errors.
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