A variant on a bear put spread, and a strategy similar to the bull ratio spread in almost all aspects except that in a bear ratio spread, put options are used instead of call options. This strategy involves selling a larger number of out-of-the-money put option and taking a long position in a smaller number of put options. The short-to-long ratio (i.e., the ratio of short put option to long put options) depends on an investor’s own requirements. This strategy requires no upfront payment and so it is a low-risk strategy. It also profits in case the underlying stays within the range formed by the two strike prices of the short and long options.

The put backspread is also sometimes known as a ratio bear spread, a put ratio spread or a ratio put spread.