> For the complete documentation index, see [llms.txt](https://catpull-1.gitbook.io/hegic/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://catpull-1.gitbook.io/hegic/buying-options/bearish-options/bear-put-spread.md).

# Bear Put Spread

Low cost, decent profits if the price falls to a certain level

<figure><img src="https://2853328886-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F9IfN0SsphIpKDZ52Rrsw%2Fuploads%2FkwtDDm5ivCxFBM5USQix%2F1_ohsFR18F1ma784cBJsxgbw.webp?alt=media&amp;token=2419274b-1a29-4160-98a6-03d9fb9d7e3e" alt=""><figcaption></figcaption></figure>

**The Bear Put Spread** is a strategy that helps you to make **a bet on a local price drop while paying less than for an at-the-money put option**.

The break-even price will also be lower than in the ATM options as the price should drop just a little lower for the Bear Put Spread to be in-the-money.

This is achieved by simultaneously **selling an out-of-the-money put option with a lower strike price when you buy an at-the-money put option**, and this is the essence of the **Bear Put Spread**.

**The Bear Put Spread has a limited low cost and capped potential profit.**

{% hint style="info" %}
Buying one Bear Put Spread is equal to buying ATM put while at the same selling a OTM put with a lower strike price.
{% endhint %}

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