Value-Trades

Bear Put Spread Strategy: Real Trade Example


Real Example (July 2025)

A bear put spread is a defined-risk, moderately bearish strategy involving the purchase of a higher strike put and sale of a lower strike put with the same expiration.
  • Stock: XYZ Corp
  • Outlook: Moderately bearish
  • Setup: Buy 1 XYZ $75 Put @ $5.00; Sell 1 XYZ $70 Put @ $2.00
  • Net Debit: $3.00 ($300 per contract)
  • Max Profit: $200
  • Max Loss: $300
  • Breakeven: $72.00

Outcomes

Price at Expiration $75 Put Value $70 Put Value Net Value of Spread Profit/Loss
> $75 (e.g., $78) $0 $0 $0 -$300
$72 $3.00 $0 $3.00 $0
< $70 (e.g., $65) $10.00 $5.00 $5.00 +$200

Compare With Bear Call Spread Strategy →

Learn Bear Call Spread

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