Sell one higher-strike put and buy two lower-strike puts, same expiry — the bearish twin of the call backspread. A sharp decline pays off through the extra long put; the worst case is a moderate drop that stalls near the long strike. Often opened for a small credit.
Premiums start as Black-Scholes model values — overwrite them with your broker’s real quotes for exact numbers.
| price | today | +4d | +8d | +11d | +15d | +19d | +23d | +26d | expiry |
|---|---|---|---|---|---|---|---|---|---|
| 130.0 | 191 | 191 | 191 | 191 | 191 | 191 | 191 | 191 | 191 |
| 125.0 | 190 | 190 | 191 | 191 | 191 | 191 | 191 | 191 | 191 |
| 120.0 | 186 | 188 | 189 | 190 | 191 | 191 | 191 | 191 | 191 |
| 115.0 | 175 | 179 | 183 | 186 | 189 | 190 | 191 | 191 | 191 |
| 110.0 | 146 | 153 | 161 | 168 | 177 | 184 | 189 | 191 | 191 |
| 105.0 | 86 | 93 | 102 | 111 | 126 | 145 | 167 | 183 | 191 |
| 100.0 | 0 | -3 | -5 | -4 | 0 | 12 | 36 | 69 | 191 |
| 95.0 | -63 | -85 | -108 | -127 | -155 | -188 | -228 | -266 | -309 |
| 90.0 | -16 | -46 | -80 | -109 | -153 | -205 | -269 | -329 | -409 |
| 85.0 | 210 | 188 | 166 | 149 | 127 | 107 | 93 | 88 | 91 |
| 80.0 | 596 | 589 | 584 | 582 | 580 | 581 | 584 | 587 | 591 |
| 75.0 | 1.1k | 1.1k | 1.1k | 1.1k | 1.1k | 1.1k | 1.1k | 1.1k | 1.1k |
| 70.0 | 1.6k | 1.6k | 1.6k | 1.6k | 1.6k | 1.6k | 1.6k | 1.6k | 1.6k |
Dollar P&L for the whole position. Pre-expiry cells are model values (constant IV); real marks will differ with volatility and skew.
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Educational model, not trade advice. Options involve substantial risk and are not suitable for every investor — read the OCC’s Characteristics and Risks of Standardized Options. Model values use Black-Scholes with your inputs (constant volatility, European exercise, no dividends) and will differ from live market prices.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.