Loading...
Sell one higher-strike put, buy one middle-strike put, buy one lower-strike put. Profits from moderate or extreme downside.
⚡
Key takeawayMirror of bull call ladder on the put side. For specific volatility views.
💡 Why It Matters
The bear put ladder sells a higher put and buys two lower puts. Profits from moderate or extreme downside. The put-side mirror of a bear call ladder. Niche structure for specific views.
⚙ How It Works
Sell 1 higher-strike put, buy 1 middle-strike put, buy 1 lower-strike put. Small credit. Profits above the short strike or below the lowest strike (extra long put kicks in). Loses in the middle zone.
📋 Example
SPY at $580. Sell $575 put, buy $565 put, buy $555 put. Credit: $0.40. Above $575: keep $0.40. Between $555-$565: max loss zone. Below $555: profit accelerates from the extra long put. Best for expecting either stability or a crash — not a mild decline.
⚠ Common Mistakes
Using bear put ladders as general bearish trades. The loss zone in the middle catches mild declines — which are the most common outcome. This is a tail-risk structure, not a directional bet.
❓ FAQ
What is Bear Put Ladder?
Sell one higher-strike put, buy one middle-strike put, buy one lower-strike put. Profits from moderate or extreme downside.
Why does Bear Put Ladder matter for premium sellers?
Mirror of bull call ladder on the put side. For specific volatility views.
How does Bear Put Ladder work?
Sell 1 higher-strike put, buy 1 middle-strike put, buy 1 lower-strike put. Small credit. Profits above the short strike or below the lowest strike (extra long put kicks in). Loses in the middle zone.
What are common mistakes with Bear Put Ladder?
Using bear put ladders as general bearish trades. The loss zone in the middle catches mild declines — which are the most common outcome. This is a tail-risk structure, not a directional bet.
Related Terms
Albatross Spread
A very wide iron condor where the short strikes are far OTM and the wings are far apart.
Bear Call Ladder
Sell one lower-strike call, buy one middle-strike call, buy one higher-strike call.
Bear Call Spread
A bearish credit spread that sells a lower call and buys a higher call, collecting premium if the stock stays below the short strike.
Bear Put Spread
A bearish debit spread: buy a higher-strike put and sell a lower-strike put.
This is not financial advice. Read our full investment disclaimer.