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
$219.24
Max profit
$780.76
Max loss
$219.24
Breakeven
65,581
Example legs (0.7 DTE front)
- Buy 65,800 put
- Sell 64,800 put
Entry greeks (per 1 BTC notional): Δ -0.360 · Γ 0.2214 per 1% · vega $6.79/pt · theta $-114.93/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.