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What Is a Bear Put Spread?

By Matthew DiLalloUpdated Jun 12, 2025 at 12:25 PM

Key Points

  • Bear put spreads limit loss to net debit, capping maximum at difference between two puts.
  • This strategy suits investors expecting a slight stock/index drop due to specific events.
  • Profit potential is high, aiming for 50-100% returns on modest market moves by expiry.

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