How are BEDZ 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 BEDZ bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 36.80%), the computed maximum profit is $133.00 per contract and the computed maximum loss is -$67.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BEDZ bear put spread?

The breakeven for the BEDZ bear put spread priced on this page is roughly $36.33 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 BEDZ market-implied 1-standard-deviation expected move is approximately 10.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

BEDZ ATM IV is at 36.80% with IV rank near 20.88%, 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.

BEDZ Bear Put Spread Strategy

BEDZ (AdvisorShares Hotel ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

International travel has experienced a remarkable surge, expanding by a factor of 57 since the emergence of modern tourism in the 1950s, based on data tracking global arrivals. Significant opportunities exist globally, with leading American hotel and accommodation providers extending their reach internationally to tap into diverse income sources. Furthermore, the worldwide travel and tourism sector contributes over 9.1% to the global economy. The Exchange Traded Fund (ETF) framework provides several advantages, such as optimized tax treatment, clear operational visibility, the flexibility of trading throughout the day, enhanced risk mitigation, and the convenience of utilizing limit orders. Following the COVID-19 pandemic, there is substantial pent-up demand, with a striking 88% of American consumers expressing eagerness to resume travel for both professional and personal purposes.

BEDZ (AdvisorShares Hotel ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.1M, a beta of 1.16 versus the broader market, a 52-week range of 30.453-37.78, average daily share volume of 2K, a public-listing history dating back to 2021. These structural characteristics shape how BEDZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.16 places BEDZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BEDZ 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 BEDZ?

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 BEDZ snapshot

As of June 30, 2026, spot at $37.34, ATM IV 36.80%, IV rank 20.88%, expected move 10.55%. The bear put spread on BEDZ 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 17-day expiry.

Why this bear put spread structure on BEDZ specifically: BEDZ IV at 36.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a BEDZ bear put spread, with a market-implied 1-standard-deviation move of approximately 10.55% (roughly $3.94 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BEDZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on BEDZ should anchor to the underlying notional of $37.34 per share and to the trader's directional view on BEDZ etf.

BEDZ bear put spread setup

The BEDZ 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 BEDZ near $37.34, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BEDZ chain at a 17-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 BEDZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$37.00	$0.99
Sell 1	Put	$35.00	$0.32

BEDZ bear put spread risk and reward

Net Premium / Debit: -$67.00
Max Profit (per contract): $133.00
Max Loss (per contract): -$67.00
Breakeven(s): $36.33
Risk / Reward Ratio: 1.985

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.

BEDZ bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on BEDZ. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$133.00
$8.26	-77.9%	+$133.00
$16.52	-55.8%	+$133.00
$24.77	-33.7%	+$133.00
$33.03	-11.5%	+$133.00
$41.28	+10.6%	-$67.00
$49.54	+32.7%	-$67.00
$57.79	+54.8%	-$67.00
$66.05	+76.9%	-$67.00
$74.30	+99.0%	-$67.00

When traders use bear put spread on BEDZ

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

BEDZ thesis for this bear put spread

The market-implied 1-standard-deviation range for BEDZ extends from approximately $33.40 on the downside to $41.28 on the upside. A BEDZ bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on BEDZ, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current BEDZ IV rank near 20.88% 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 BEDZ at 36.80%. As a Financial Services name, BEDZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BEDZ-specific events.

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

Frequently asked questions

What is a bear put spread on BEDZ?: A bear put spread on BEDZ is the bear put spread strategy applied to BEDZ (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 BEDZ etf trading near $37.34, the strikes shown on this page are snapped to the nearest listed BEDZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BEDZ 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 BEDZ bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 36.80%), the computed maximum profit is $133.00 per contract and the computed maximum loss is -$67.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BEDZ bear put spread?: The breakeven for the BEDZ bear put spread priced on this page is roughly $36.33 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 BEDZ market-implied 1-standard-deviation expected move is approximately 10.55%; 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 BEDZ?: Bear put spreads on BEDZ reduce the cost of a bearish BEDZ 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 BEDZ implied volatility affect this bear put spread?: BEDZ ATM IV is at 36.80% with IV rank near 20.88%, 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.