Ratios & backspreads
Strongly bearish
Debit or credit
Risk: Defined: worst at the long strike
Put ratio backspread
Also called: Put backspread
Sell one put and buy two lower-strike puts: large gains in a sharp fall, worst outcome at the bought strike.
Payoff sketch (per unit, index points)
At expiry
Today (7 days left)
Net premium
Debit 9 pts
Max profit
Large as the price falls
Max loss
−209 pts (₹13,566 per lot)
Breakeven
24,591
How it works
A crash-protection structure: the extra long put gains in a sharp fall, which is also when implied volatility rises and helps the long options.
When traders use it
- Holding cheap protection against a sharp fall.
Greeks
| Delta | Small at entry, growing negative in a fall. |
| Gamma | Positive near and below the bought strike. |
| Theta | Negative near the bought strike. |
| Vega | Positive. |
Profit, loss and margin
| Max profit | Large below the lower breakeven. |
| Max loss | (Strike gap − net credit, or + net debit) × quantity, at the bought strike. |
| Breakeven | Lower: bought strike − strike gap + net credit (or − net debit). Upper, only if entered for a credit: sold strike − credit. |
| Margin | Little beyond the debit: the short put is covered by a long put. |
In India
- SPAN margins the whole position, so a defined-risk spread usually blocks far less than its short leg alone. Brokers grant the hedge benefit only when the protective leg is actually in the account, which is why the long leg is usually placed first.
- A long option that finishes in the money is exercised automatically. STT is then charged on its intrinsic value at the exercise rate (0.15% from 1 April 2026 in Arthfy's cost model), instead of the sale rate on the premium (also 0.15%) that applies when the option is sold before the close. See the lesson on the STT exercise trap.
Arthfy numbers
Arthfy's history does not cover backspreads yet.
Try it in the F&O hub
Opens the tool with this structure on today's NIFTY chain. Reading is free with an Arthfy account; some runs use free attempts.Open in the builderPayoff, Greeks, scenario grid and charges on today's NIFTY chain
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