Bear put spread (debit)
BearishLimited profitLimited loss
Buy a put, sell a lower put: cheaper downside exposure, capped profit.
Payoff at expiry — live BTC example
Net debit
$315.71
Max profit
$684.29
Max loss
$315.71
Breakeven
74,084
Example legs (0.4 DTE front)
- Buy 74,400 put
- Sell 73,400 put
Entry greeks (per 1 BTC notional): Δ -0.281 · Γ 0.0837 per 1% · vega $3.15/pt · theta $-147.00/day
How it works
Long put financed by a short lower put: profits grow down to the short strike, then cap.
When to use it
You have a downside target in mind; paying less than an outright put matters more than open-ended profit.
Risks & management
If price collapses through the lower strike you leave profit on the table; if it holds, the debit is lost. Choose the short strike at the target, not beyond it.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.