Ideas
.svg)
Intel Junction
Trade
Watchlist
Orders
Positions
Broker Access
Hot Keys
Alert Trigger Order (ATO)
Bracket Order
Target Stoploss Order
Add Broker
Track
Built-Up Breadth
Built-Up Scrip Symbol
Synopsis Futures OI
Built-Up Sectors
Top Stocks
Intraday Movers
Analyze
Charts/ Order & Trade
Multi Strike OI
O&T Watch List
Strategy Chart
Scan
Built-Up Scrip OI-Historical
Built-Up Sector Cycle
Built-Up Sector OI-Historical
Built-Up Scrip Cycle
Comparative Analysis
Tools
Optimizer Find Strategy
Optimizer Find Specific
Optimizer My Forecasts
Optimizer Constrains
Learn
Events
Webinars
Book a Session
Bear Put Spread
bearishBear Put Spread is a bearish strategy that executed by buying a put and selling lower strike Put to fund it. It is a net debit strategy with limited risk to limited reward strategy
Example:
| Instrument | Qty | Price |
|---|---|---|
| BUY NIFTY 15-Sep-26 23450 PE | 65 | 101.1 |
| SELL NIFTY 15-Sep-26 23400 PE | 65 | 80.7 |
When To Execute?
Bull Put spread is executed when we have bearish outlook on the underlying. Instead of buying naked put with higher outflow, one sells lower strike Put to partially fund the outflow resulting in hedged strategy
Trade
Buy 1 lot ATM Put and Sell 1 lot deep OTM Put
Advantages
Helps to participate in bearish stock with relatively low cost
Reduced risk, cost, and breakeven point for a medium- to long-term bearish trade as compared to buying a Put alone
Disadvantages
Capped profit if the stock falls below lower strike
Identifying clear area of support and selection of strike becomes very important
Maximum Profit
Maximum reward is limited to difference in strike less net outflow. Maximum Profit arises if the stock closes at or below the lower put strike. Identifying clear downtrend is essential for the strategy
Maximum Loss
Maximum risk is limited to difference in cost of long and short Put. Breakeven for the strategy would be higher strike minus net outflow