Bear Put Spread Calculator
Simulate vertical debit put spread returns, capped downside profit, and breakeven levels.
Strategy Position Legs (2)
Expiry P&L Visualization
How the Calculation Works
Read parameters and compute total exposure: multiply order quantity by contract unit multiplier.
Evaluate terminal return at the selected target price using strict financial mathematical boundary logic.
Deduct upfront capital commitments, taxes, or net debits to produce final net profit or loss realization.
Calculation Formula
Example Calculation
Buy 24,500 Put at ₹160, Sell 24,000 Put at ₹45 across 50 units.
Spread width is 500 points minus 115 debit = 385 points max gain (₹19,250 on 50 units) if spot finishes at or below 24,000.
Assumptions & Parameters
- Both legs share identical expiration dates and underlying contract roots.
Frequently Asked Questions
What is a bear put spread?
A bear put spread is a defined-risk, moderately bearish strategy formed by buying a higher strike put and selling a lower strike put.
What is the maximum profit?
Maximum profit equals the difference between the two strike prices minus the net debit paid, multiplied by total units.
What is the maximum loss?
Maximum loss is limited to the net premium paid to initiate the position.
How is the breakeven price calculated?
Breakeven equals the higher (long put) strike price minus the net debit per unit.
Why not simply buy a naked put?
A spread significantly reduces cash outlay and offsets negative theta decay, though it caps gains beyond the lower strike.
What happens if the underlying rises strongly?
Both puts expire Out-of-the-Money worthless. Your total loss remains strictly capped at the initial net debit.