Vertical Spread Analysis
Bear Put Spread Calculator: AAPL
Professional scenario analysis and payoff visualization for debit put spreads.
Bear Put Spread Scenario Analysis: AAPL
| Scenario Move (%) |
|---|
| Price at Expiry |
| Long Put Value |
| Short Put Value |
| Spread Value |
| Profit / Loss |
| ROI on Debit |
* Click the percentage values to edit scenarios.
Payoff Profile At Expiration: AAPL
What this calculator does
The Bear Put Spread Calculator estimates the cost, breakeven, and maximum profit for bearish debit spreads. It allows for detailed scenario modeling of how the position value changes as the stock moves lower.
How the strategy works
A bear put spread involves buying a higher-strike put and selling a lower-strike put. By selling the lower strike, you significantly lower the cost of the trade at the expense of capping your potential reward.
Key Formulas
Max Profit = (Spread Width - Net Debit Paid) × 100
Breakeven = Long Put Strike - Net Debit
When traders use this strategy
Traders use this for moderate bearish outlooks. It reduces the impact of time decay (theta) compared to buying a single put option.
Risks to understand
Your maximum loss is limited to what you paid for the spread. This loss is realized if the stock closes at or above the long put strike at expiration.
Frequently Asked Questions
How do you calculate profit?
Subtract your net debit from the difference in the strike prices of the two options (at expiration).
Why is profit capped?
The short put you sold limits your gains because once the stock goes below its strike, you are effectively "buying" at the strike price while "selling" on the long leg.
This calculator is for educational purposes only and does not provide financial advice.