Bear Put Ladder

bearish3 legs

Bear put spread + one more short put lower. Cheaper entry; risk below the bottom strike.

Payoff shape at expiration (illustrative)

Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.

How it works

A bear put spread plus one more short put lower. The extra premium cuts the cost — in exchange for giving back profits, then losing, if the stock collapses past the bottom strike.

When to use it

Bearish to a support level, confident it holds there. The cheap way to short a grind lower.

What can go wrong

Substantial below the bottom strike — the naked short put means a true crash turns a winning thesis into a losing trade. Size for the crash case, not the base case.

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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.