A bear spread is an options strategy put on when a trader is expecting the price of the underlying to decline on a limited basis to create a profitable outcome or to limit losses. A bear spread can be put on as a bear call or bear put. A bear put spread consists of the purchase of a put option with a higher strike price and the sale of a put with a lower strike price on the same underlying with the same expiry. The long/short position profits as the price of the underlying falls but is capped if the underlying declines to the strike of the short put. Losses are capped if the price of the underlying goes above the strike of the long side.