Put Ratio Spread

bearish2 legs

Buy 1 long put + sell 2 short puts lower. Credit; tail risk below the shorts.

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

Buy one put and sell two (or more) lower-strike puts, often for near-zero cost.

When to use it

When you expect a drift down toward the short strike, not a crash through it.

What can go wrong

The extra short put means a crash produces open-ended losses below the lower breakeven — a structure that profits from a modest decline can be badly hurt by a large one.

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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.