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Long put and bear put spread

A put is insurance or a downside bet. BTO (buy to open) a put, or buy a higher put and sell a lower one.

A long put is a defined-debit bet the stock falls — or a floor under shares you already own. A bear put buys the higher put and sells a cheaper one below it: debit and gain both capped.

Own stock at $100, buy a $95 put for $3 — that is insurance. Or BTO (buy to open) $175 / STO (sell to open) $165 on AMZN $180: debit $2.20, max gain $780. Teaching numbers only.

The lab is the bear put. Slide AMZN down through $175. The short $165 wing caps both the gain and the net Greeks.

Long put or bear put — down, defined debitLeft: long put profit as the stock falls. Right: bear put caps both the debit and the gain.Long put or bear put — down, defined debitTeaching sketchLong putKstock downlose premiumBear put spreadmax gainmax = debit
Long put = BTO only. Bear put = BTO the higher put + STO the lower put. Insurance under shares you own is the long put, not a cash-secured put.

Teaching lab

Bear put — debit both ways capped

AMZN $180. BTO $175 put at $4. STO $165 put at $1.80. Net debit $2.20.

P/L / share
-0.07
×100
-7
Delta
-0.218
Gamma
0.0143
Theta / day
-0.0345
Vega / vol pt
+0.0951

P/L / share

vs the lesson entry

7.720.00-2.20$140$160$180$200$220

Delta

share-equivalent

0.00-0.32$140$160$180$200$220

Gamma

peaks near the strikes

0.0140.000-0.017$140$160$180$200$220

Theta / day

clock

0.0400.000-0.037$140$160$180$200$220

Vega / vol pt

fear priced in

0.0980.000-0.085$140$160$180$200$220

Rho / rate pt

small at 30 days

0.000-0.049$140$160$180$200$220

Long put alone is the $175 leg. The short wing cuts debit, gain, and net Greeks.

Try it: Practice train

Tickets for this structure

BTO (buy to open) · STO (sell to open) · BTC (buy to close) · STC (sell to close). Illustrative fills only. We never send these orders.

BTO (buy to open)

Open a long

Buy to open

AMZN $180. BTO (buy to open) 1× 30-DTE (days to expiration) $175 put at $4.00 ($400). Break-even $171. That is the long put.

STO (sell to open)

Open a short

Sell to open

Bear put: also STO (sell to open) the $165 put at $1.80. Net debit $2.20. Max gain $780; max loss $220.

STC (sell to close)

Close a long

Sell to close

Put later $15. STC (sell to close) at $15. Long-put P/L (profit and loss) = +$1,100. Spread: STC (sell to close) the $175 with BTC (buy to close) the $165.

BTC (buy to close)

Close a short

Buy to close

BTC (buy to close) the short $165 when you flatten. Leave it and you are naked short that put.

Which open is which

Long put = BTO (buy to open) only. Bear put spread = BTO (buy to open) higher + STO (sell to open) lower. Closing the long = STC (sell to close). Closing the short = BTC (buy to close). Prefer the spread on the desk when IV (implied volatility) is expensive and you want the loss capped at the debit.

How the Greeks move

Long higher put: negative delta, you pay theta. Adding the short lower put cuts debit, max gain, and net vega. Slide through $165: P/L (profit and loss) flattens at the cap.

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Teaching numbers only — not a live quote, not a fill, not financial advice. All lessons · Back to Practice · Replay · Journal.