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Directional strategyIntermediate

Bear Put Spread

Buy a put and sell a lower-strike put – cheaper way to bet on falling prices.

When to use

For moderate expected declines with defined risk.

Step-by-step

  1. 1

    Buy an ATM put

  2. 2

    Sell an OTM put below

  3. 3

    Same expiration, 30–60 DTE

Example

QQQ at 450. Buy 450 put at 8, sell 430 put at 3. Net debit 5, max gain 1500 below 430.