Put version of the diagonal spread. Buy a longer-dated ITM/ATM put and sell a shorter-dated OTM put. Benefits from time decay while maintaining bearish exposure.
Variable — depends on strikes and time decay
Net premium paid or debit
Varies with strikes and premiums
Short 1 near-term OTM Put + Long 1 longer-term higher-strike Put
Limited and variable profit. Limited risk. Benefits from time decay.
When you're mildly bearish and want income from time decay. When you want a capital-efficient bearish position. When you expect gradual decline.