Buy a put spread when bearish bias is strong and IV is low. Defined max risk equals the debit paid.
Bear Put Debit Spread
Debit Spread
Bias: bearish
Timeframe: open
defined-risk
Rules
- Entry
- Bearish trend confirmed + IV percentile below 30
- Strike
- Long leg ATM or 1 ITM
- Wing
- 2-5 strikes wide
- Max Risk Pct
- 1
- Profit Target Pct
- 75
- Stop Pct
- 50
- Time Stop
- 15:50 ET
Trades well on these 0DTE-eligible tickers
Going deeper
Bear Put Debit Spread on 0DTE: Full Mechanics →
The full mechanics of a bear put debit spread on 0DTE — buying directional puts with a long wing for defined risk.