AIED Bear Put Spread Strategy
AIED (Defiance LLM Catalyst Momentum ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The actively managed ETF seeks capital appreciation by investing primarily in U.S.-listed large-capitalization companies. Its strategy combines AI-driven momentum analysis with a large language model news signal to select and weight portfolio securities.
AIED (Defiance LLM Catalyst Momentum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $19.8M, a beta of 1.40 versus the broader market, a 52-week range of 45.29-64.44, average daily share volume of 5K, a public-listing history dating back to 2019. These structural characteristics shape how AIED etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.40 indicates AIED has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bear put spread on AIED?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
AIED snapshot
As of November 13, 2026, spot at $51.66, ATM IV 36.20%, expected move 10.38%. The bear put spread on AIED below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bear put spread structure on AIED specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AIED is inferred from ATM IV at 36.20% alone, with a market-implied 1-standard-deviation move of approximately 10.38% (roughly $5.36 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIED expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIED should anchor to the underlying notional of $51.66 per share and to the trader's directional view on AIED etf.
AIED bear put spread setup
The AIED bear put spread below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AIED at $51.66 on that close, the first option leg uses a $52.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIED chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AIED shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $52.00 | $2.30 |
| Sell 1 | Put | $49.00 | $1.15 |
AIED bear put spread risk and reward
- Net Premium / Debit
- -$115.00
- Max Profit (per contract)
- $185.00
- Max Loss (per contract)
- -$115.00
- Breakeven(s)
- $50.85
- Risk / Reward Ratio
- 1.609
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
AIED bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on AIED. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$185.00 |
| $11.43 | -77.9% | +$185.00 |
| $22.85 | -55.8% | +$185.00 |
| $34.27 | -33.7% | +$185.00 |
| $45.69 | -11.5% | +$185.00 |
| $57.12 | +10.6% | -$115.00 |
| $68.54 | +32.7% | -$115.00 |
| $79.96 | +54.8% | -$115.00 |
| $91.38 | +76.9% | -$115.00 |
| $102.80 | +99.0% | -$115.00 |
When traders use bear put spread on AIED
Bear put spreads on AIED reduce the cost of a bearish AIED etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
AIED thesis for this bear put spread
The market-implied 1-standard-deviation range for AIED extends from approximately $46.30 on the downside to $57.02 on the upside. A AIED bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on AIED, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. As a Financial Services name, AIED options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIED-specific events.
AIED bear put spread positions are structurally moderately bearish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AIED positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIED alongside the broader basket even when AIED-specific fundamentals are unchanged. Long-premium structures like a bear put spread on AIED are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current AIED chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on AIED?
- A bear put spread on AIED is the bear put spread strategy applied to AIED (etf). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With AIED etf at $51.66 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed AIED chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AIED bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the AIED bear put spread priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.20%), the computed maximum profit is $185.00 per contract and the computed maximum loss is -$115.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AIED bear put spread?
- The breakeven for the AIED bear put spread priced on this page is roughly $50.85 at expiration, derived from the November 13, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AIED market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on AIED?
- Bear put spreads on AIED reduce the cost of a bearish AIED etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current AIED implied volatility affect this bear put spread?
- Current AIED ATM IV is 36.20%; IV rank context is unavailable in the current snapshot.