How are AVEM 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 AVEM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 26.80%), the computed maximum profit is $302.50 per contract and the computed maximum loss is -$197.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVEM bear put spread?

The breakeven for the AVEM bear put spread priced on this page is roughly $90.03 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AVEM market-implied 1-standard-deviation expected move is approximately 7.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVEM implied volatility affect this bear put spread?

AVEM ATM IV is at 26.80% with IV rank near 3.95%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

AVEM Bear Put Spread Strategy

AVEM (Avantis Emerging Markets Equity ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Invests in a broad set of companies of all market capitalizations across emerging market countries and is designed to increase expected returns* by overweighting securities believed to be trading at lower valuations with higher profitability ratios**.Pursues the benefits associated with indexing (diversification, low turnover, transparency of exposures), but with the ability to add value by making investment decisions using information in current prices. Efficient portfolio management and trading process that is designed to enhance returns and seeks to reduce unnecessary risks and costs. Built to fit seamlessly into an investor's asset allocation.

AVEM (Avantis Emerging Markets Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $23.44B, a beta of 1.00 versus the broader market, a 52-week range of 63.91-96.075, average daily share volume of 2.1M, a public-listing history dating back to 2019. These structural characteristics shape how AVEM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.00 places AVEM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVEM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a bear put spread on AVEM?

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.

Current AVEM snapshot

As of May 15, 2026, spot at $91.96, ATM IV 26.80%, IV rank 3.95%, expected move 7.68%. The bear put spread on AVEM below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.

Why this bear put spread structure on AVEM specifically: AVEM IV at 26.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVEM bear put spread, with a market-implied 1-standard-deviation move of approximately 7.68% (roughly $7.07 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVEM should anchor to the underlying notional of $91.96 per share and to the trader's directional view on AVEM etf.

AVEM bear put spread setup

The AVEM bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AVEM near $91.96, the first option leg uses a $92.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVEM chain at a 34-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 AVEM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$92.00	$3.45
Sell 1	Put	$87.00	$1.48

AVEM bear put spread risk and reward

Net Premium / Debit: -$197.50
Max Profit (per contract): $302.50
Max Loss (per contract): -$197.50
Breakeven(s): $90.03
Risk / Reward Ratio: 1.532

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.

AVEM bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on AVEM. 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%	+$302.50
$20.34	-77.9%	+$302.50
$40.67	-55.8%	+$302.50
$61.01	-33.7%	+$302.50
$81.34	-11.6%	+$302.50
$101.67	+10.6%	-$197.50
$122.00	+32.7%	-$197.50
$142.33	+54.8%	-$197.50
$162.66	+76.9%	-$197.50
$183.00	+99.0%	-$197.50

When traders use bear put spread on AVEM

Bear put spreads on AVEM reduce the cost of a bearish AVEM etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.

AVEM thesis for this bear put spread

The market-implied 1-standard-deviation range for AVEM extends from approximately $84.89 on the downside to $99.03 on the upside. A AVEM bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on AVEM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current AVEM IV rank near 3.95% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AVEM at 26.80%. As a Financial Services name, AVEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVEM-specific events.

AVEM 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. AVEM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVEM alongside the broader basket even when AVEM-specific fundamentals are unchanged. Long-premium structures like a bear put spread on AVEM 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 AVEM chain quotes before placing a trade.

Frequently asked questions

What is a bear put spread on AVEM?: A bear put spread on AVEM is the bear put spread strategy applied to AVEM (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 AVEM etf trading near $91.96, the strikes shown on this page are snapped to the nearest listed AVEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AVEM 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 AVEM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 26.80%), the computed maximum profit is $302.50 per contract and the computed maximum loss is -$197.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVEM bear put spread?: The breakeven for the AVEM bear put spread priced on this page is roughly $90.03 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AVEM market-implied 1-standard-deviation expected move is approximately 7.68%; 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 AVEM?: Bear put spreads on AVEM reduce the cost of a bearish AVEM 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 AVEM implied volatility affect this bear put spread?: AVEM ATM IV is at 26.80% with IV rank near 3.95%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.