Bear Put Spread (put debit spread)

A bear put spread (put debit spread) buys an ATM or ITM put and sells a further-OTM put to reduce the cost. It is a defined-risk bearish strategy: you pay a net debit and profit when the underlying falls toward the short put.

Structure and payoff

Two legs on the put side:

• Buy ATM/ITM Put — your directional leg
• Sell further-OTM Put — lowers the cost and caps the downside profit

When to use it

Use it for a controlled bearish view with defined risk. Max loss is the debit paid; max profit is the strike gap minus the debit. A cheaper alternative to buying a naked put.