A variant on a ratio put spread , and a strategy similar to the ratio bull spread in almost all aspects except that in a ratio bear 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. Other types of a ratio bear spread includes: a bear debit ratio spread, a bear credit ratio spread, and a bear free ratio spread.

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