print Bear Ratio Spread Printable Version

Bear Ratio Spread Risk Graph

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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