Bearish options calculator
Put Spread Calculator
Model a debit put spread by buying a higher-strike put and selling a lower-strike put for the same expiration.
Reviewed May 2026
When a put spread is useful
A debit put spread can fit a defined bearish view: the trader expects the stock to fall, but wants to reduce the cost of buying a put by selling a lower-strike put.
- Estimate the downside move required to break even.
- Compare strike widths for different bearish targets.
- Check how much value may remain before expiration if the move happens early.
What the payoff means
At expiration, a standard put spread reaches maximum value when the stock finishes at or below the short put strike. The maximum profit is the spread width minus the debit paid.
Common questions
Can a debit put spread lose more than the debit?
A standard long debit put spread generally has maximum loss equal to the debit paid, before commissions and execution differences.
Why sell the lower-strike put?
Selling the lower-strike put reduces the cost of the long put, but it caps the profit if the stock falls below that strike.
Does the calculator handle early assignment?
No. It models theoretical option value and expiration payoff. Early assignment and exercise decisions require separate judgment.