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Short Bear Ratio Spread

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Short Bear Ratio Spread Risk Graph
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Short Bear Ratio Spread - Components


A Short Bear Ratio Spread eliminates payment for At The Money (ATM) Put options by selling a smaller number of deep In The Money (ITM) put options.

Buy ATM Put + Sell ITM Put



Short Bear Ratio Spread - Expectation

Down



Short Bear Ratio Spread - Risk / Reward

Maximum Profit: Unlimited

Maximum Loss: Limited



Short Bear Ratio Spread - Breakeven Point

Lower Breakeven Point = Strike Price Of Long Put Options - (Maximum loss / (number of Long Put Options - number of short put options))

Upper Breakeven Point = Strike Price Of the Short put options



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