There are a number of advantaged of implementing the bear put spread instead of buying a put option. A bear put spread has lower risk than strictly buying put options, but limited profit potential. The bear put spread also has a higher breakeven so the share price does not have to fall as far as a bought put option. The advantages of a bear put spread over a bought put is that the strategy reduces time decay and volatility influence on the strategy pricing. This is because we are selling the out-of-the-money options therefore that option benefits from time decay and volatility reducing the opposite characteristic to a bought call option. Bear put spread can be used when volatility is high and buying a put is too expensive as it eliminates the risk of volatility decreasing. Another reason to trade bear puts is that you might have identified a support level; you can sell the out-of-the-money options at that level to reduce the cost and that will be the maximum profit level at expiry. The main benefit to just buying options is large potential profits and a better delta meaning easier to exit the trade earlier. Also if you are expecting volatility to increase significantly a bought positions will improve as a bear put spread would not.
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