Also known as: Put Ratio Backspread
Sell 1 put + buy 2 lower puts. Wins big on a crash; small credit if it holds.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Sell one put and buy TWO puts at a lower strike, for near-zero cost or a credit. A crash pays on the extra long put; a hold above the short strike keeps the credit.
Crash protection that costs little while you wait — the classic way to own tail risk without bleeding premium every month.
Maximum loss at the long strike at expiration — a slow drift down to exactly that level is the worst case. Modest declines are this trade's enemy; big ones are its purpose.
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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.