Bear Put Spread
Anticipate the decline with controlled risk.
Objective
Benefit from a moderate market decline while knowing the maximum risk in advance.
Principle
Implementing a strategy to take advantage of a bearish scenario, with risk and return framed according to the client's profile.
When OIS Finance anticipates a market downturn,
A structure is being put in place to take advantage of it.
The risk is limited from the outset
and the potential profit is known in advance.
The strategy is tailored to the client's investment profile.
Scenario: 1
Bull market:
The loss is limited to the defined amount.
Scenario: 2
Market in moderate decline:
the strategy generates gradual performance.
Scenario: 3
Market in sharp decline:
maximum gain is achieved according to the expected conditions.
Summary
Anticipated decline → Performance opportunity
Limited risk → Visibility
Capped earnings → Discipline
📉 Numerical example – Bear Put Spread
Customer situation
Underlying asset: stock / index X
Current level: 100
Anticipation: moderate decline
OIS Finance acts as discretionary manager
Structure set up by OIS Finance
Buying a put option at 100 → 6 CHF
Selling a put at 85 → 3 CHF
Quantity: 1 contract (100 units)
Deadline: 3 months
Cost of the strategy
Bonus paid: CHF 600
Bonus collected: -300 CHF
➡️ Net investment: CHF 300 ➡️ Maximum risk: CHF 300
Scenarios at the end of the term
🔴 Market ≥ 100
Both puts expire worthless.
Limited loss: -300 CHF
🟠 Market between 85 and 100
The 100 put option is gaining value
The 85 put option is not exercised 👉 The strategy benefits from the gradual decline
🟢 Market ≤ 85
Maximum gain achieved
(100 – 85) × 100 – 300 = 1,200 CHF
Indicative projection of your
investment strategy