strategy comparison
Bull Put Spread vs Bear Call Spread
These are the same credit-spread machine pointed in opposite directions.
Side by side
Same eight dimensions for both structures — outlook, risk, Greeks, capital, complexity, and the IV environment each one wants.
| Dimension | Bull Put Spread | Bear Call Spread |
|---|---|---|
| Outlook | bullish / neutral | bearish / neutral |
| Max profit | Premium received | Premium received |
| Max loss | Width of spread - premium received | Width of spread - premium received |
| Breakevens | Short strike - premium received | Short strike + premium received |
| Greeks exposure | Positive delta; positive theta, short vega. | Negative delta; positive theta, short vega. |
| Capital / margin | Spread width minus credit received, per contract. | Spread width minus credit received, per contract. |
| Complexity | intermediate | intermediate |
| Best IV environment | High IV rank — richer credit and IV contraction in your favor. | High IV rank — you are selling the richer side of the chain. |
Payoff at a glance
Illustrative P/L at expiration for both structures at a $100 underlying. Exact strikes and premiums are on each strategy's guide.
The verdict
When to choose which
These are the same credit-spread machine pointed in opposite directions. Choose the bull put spread when your outlook is bullish to neutral — sell the put side; choose the bear call spread when it is bearish to neutral — sell the call side. Both collect premium, both cap risk at width minus credit, and choosing between them is purely a direction call.
Frequently asked questions
Are the risks really identical?
Mechanically yes — width minus credit, defined at entry. In practice the put side carries more gap risk (stocks fall faster than they rise) and the call side carries more squeeze risk.
Can I run both at once?
Yes — that is an iron condor. Selling both a bull put spread below and a bear call spread above is exactly how the four-leg structure is assembled.
Which side pays more in high IV?
Whichever side the fear is on — usually puts. IV skew makes put credit richer in selloffs and call credit richer in melt-ups; sell the side the market is pricing.