Put ratio spread (1×2)
Neutral / rangeLimited profitLimited loss
Buy 1 put, sell 2 lower: profit peak at the short strike, risk below.
Payoff at expiry — live BTC example
Net debit
$372.64
Max profit
$1,227
Max loss
$73,773
Breakevens
73,773 / 76,227
Example legs (1.0 DTE front)
- Buy 76,600 put
- Sell 2× 75,000 put
Entry greeks (per 1 BTC notional): Δ -0.067 · Γ -0.0738 per 1% · vega $-6.88/pt · theta $152.55/day
How it works
Mirror of the call ratio: cheap or free entry, peak at the lower strike, open risk below it.
When to use it
"Down, but not a crash" — drift to support without a break.
Risks & management
Crashes are exactly when the naked lower put activates; in crypto that tail is fat. Respect the S→0 max-loss number.
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.