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Bear Ratio Spread

Profile Version / Simplified Version / Comprehensive Version


print bear put spread Printable Version

Bear Ratio Spread Risk Graph
Learn How To Read This Chart

Bear Ratio Spread - Components


Buy At The Money (ATM) Put Options while simultaneously Sell to open enough Out Of The Money (OTM) Put Options to cover the entire cost of the put options bought.

Buy ATM Put + Sell More OTM Put





Bear Ratio Spread - Expectation


Down & Stagnant



Bear Ratio Spread - Risk / Reward


Maximum Profit: Limited

Maximum Loss: Unlimited



Bear Ratio Spread - Breakeven Point


Strike Price of Short put options - [Maximum Profit / (number of short put options - number of long put options)]



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