Among the bearish strategies, we find the Bear Put Spread Strategy. The Bear Put Spread is part of a series of multi-leg strategies that consist of simultaneously buying and selling options with the same expiration but different strike prices. The Bear Put Spread is a bearish strategy that has a limited maximum profit and risk. The strategy benefits from a decline in the price of the underlying asset. The trader’s view is bearish. It is a strategy that involves buying a put and selling a put with a lower strike than the bought put. The option’s expiration is the same. In this case, we buy a put by paying the premium and sell a put with a lower strike to reduce the cost of the premium of the bought put. This is a debit strategy as we pay the difference between the two premiums. Unlike the purchase of a put or the Long Put strategy, our cost is reduced as we have a selling leg of a put in which we receive a premium. Bear Put Spread Payoff Diagram The Bear Put Spread …