A Bear Put Spread is the bearish counterpart of a Bull Call Spread a defined-risk strategy built by buying a put option at a higher strike price and selling a put at a lower strike price, both with the same expiry. The sold put reduces the net cost of the position but caps the maximum profit. The strategy profits when the underlying falls below the long put's strike price. Maximum gain equals the difference between the two strikes minus the net premium paid; maximum loss is the net premium paid if the underlying closes above the long put strike at expiry. Bear Put Spreads are widely used in Indian markets by traders who want bearish exposure with clear, pre-defined risk parameters.
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