The Bear Put Spread

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About Course

The Smarter Bear Strategy.

You’ve learned the Long Put, where you bet on a market crash but pay a high price for the privilege. Now, we’re going to show you how to trade like a professional by using the Bear Put Spread. It’s “Smarter” because it lowers your cost and increases your ROI by selling a bit of someone else’s insurance to pay for your own.

The Bear Put Spread is a “Defined Risk” directional strategy. It allows you to profit from a falling market with significantly less capital than a long put. By buying a put and simultaneously selling a cheaper one further below, you “discount” your trade. This results in a high-leverage, high-reward setup where you can see potential returns of over 160% if the market drops to your target.

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What Will You Learn?

  • 1. The 'Discounted' Bear Bet
  • How to construct a Bear Put Spread using the SPY $672/$668 model.
  • Understanding why this is a Debit Spread (You pay to enter, but less than a naked put).
  • 2. The Math of High Leverage
  • Calculating your Max Loss (The $152 net debit paid).
  • Calculating your Max Profit (Strike width minus debit = $248).
  • Why an ROI of 163% is possible in just 42 days.
  • 3. The Strategy Trade-Off
  • Understanding the Breakeven: Higher Strike minus Debit ($672 - $1.52 = $670.48).
  • Probability vs. Reward: Why we accept a 47% win rate in exchange for massive profit potential.
  • 4. The 'Momentum' Greeks
  • Negative Delta: How the spread value explodes as the stock falls.
  • Theta Management: Why this trade needs a "quick" move to reach its full potential.
  • 5. Professional Trade Management
  • Exit actions: What to do if the price is above, between, or below your strikes at expiry.
  • The "Take Profit" target for directional spreads.

Course Content

1. The ‘Smarter’ Directional Bet

  • Lesson 1.1: Introduction – The Long Put Upgrade
  • Lesson 1.2: Why We Call it a ‘Debit Spread’
  • Lesson 1.3: Capping the Profit for Lower Risk

2. The Math of Leverage (Risk vs. Reward)

3. The Greeks of Momentum (Delta & Theta)

4. Picking Your Strikes and Assignment Risk

5. Actions to Take at Expiry

6. Topic 6: Course Summary & The Bearish Roadmap

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