Bear Put Spread
The mirror image: you expect a moderate decline. You bet on the drop cheaper and with capped risk, and the profit builds down to a preset lower level.
How the Bear Put Spread works
The sold lower put cheapens the bought higher put; profit is capped at the lower strike, risk at the debit paid.
Placing strikes at GEX levels
Set the lower (sold) put at the Put Wall — the likely support and target; buy the higher put above. The ideal regime is mildly bearish, below the Gamma Flip.
The Put Wall and Gamma Flip are computed live in the GEX Terminal — build the spread in the Position Builder.
When to open, the Greeks and managing the position
Open it on a mildly negative outlook — a gentle decline under key resistance is expected. In futures, leverage raises the return on the margin posted. Breakeven = higher strike − debit, max loss = debit.
Greeks: selling the lower put cheapens the hedge and shifts the breakeven up. Management: profit is capped at the lower strike — take it at the target.
FAQ
The higher strike minus the debit paid.
Capped at the debit paid.
Build the Bear Put Spread on live BTC and ETH quotes in the Position Builder.
Open the Position BuilderRelated strategies
Information is for educational purposes only and does not constitute investment advice. Options trading carries high risk.