How are ECH 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 ECH bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 33.00%), the computed maximum profit is $128.50 per contract and the computed maximum loss is -$71.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ECH bear put spread?

The breakeven for the ECH bear put spread priced on this page is roughly $39.29 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 ECH market-implied 1-standard-deviation expected move is approximately 9.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

ECH ATM IV is at 33.00% with IV rank near 29.15%, 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.

ECH Bear Put Spread Strategy

ECH (iShares MSCI Chile ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

iShares, Inc. - iShares MSCI Chile ETF is an exchange traded fund launched by BlackRock, Inc. It is managed by BlackRock Fund Advisors. The fund invests in public equity markets of Chile. It invests in stocks of companies operating across diversified sectors. The fund invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track the performance of the MSCI Chile IMI 25/50 Index, by using representative sampling technique. iShares, Inc. - iShares MSCI Chile ETF was formed on November 12, 2007 and is domiciled in the United States.

ECH (iShares MSCI Chile ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.06B, a beta of 1.04 versus the broader market, a 52-week range of 29.28-47.85, average daily share volume of 555K, a public-listing history dating back to 2007. These structural characteristics shape how ECH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places ECH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ECH 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 ECH?

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 ECH snapshot

As of June 29, 2026, spot at $39.73, ATM IV 33.00%, IV rank 29.15%, expected move 9.46%. The bear put spread on ECH 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 18-day expiry.

Why this bear put spread structure on ECH specifically: ECH IV at 33.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a ECH bear put spread, with a market-implied 1-standard-deviation move of approximately 9.46% (roughly $3.76 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ECH expiries trade a higher absolute premium for lower per-day decay. Position sizing on ECH should anchor to the underlying notional of $39.73 per share and to the trader's directional view on ECH etf.

ECH bear put spread setup

The ECH 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 ECH near $39.73, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ECH chain at a 18-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 ECH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$40.00	$1.38
Sell 1	Put	$38.00	$0.66

ECH bear put spread risk and reward

Net Premium / Debit: -$71.50
Max Profit (per contract): $128.50
Max Loss (per contract): -$71.50
Breakeven(s): $39.29
Risk / Reward Ratio: 1.797

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.

ECH bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on ECH. 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%	+$128.50
$8.79	-77.9%	+$128.50
$17.58	-55.8%	+$128.50
$26.36	-33.7%	+$128.50
$35.14	-11.5%	+$128.50
$43.93	+10.6%	-$71.50
$52.71	+32.7%	-$71.50
$61.49	+54.8%	-$71.50
$70.28	+76.9%	-$71.50
$79.06	+99.0%	-$71.50

When traders use bear put spread on ECH

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

ECH thesis for this bear put spread

The market-implied 1-standard-deviation range for ECH extends from approximately $35.97 on the downside to $43.49 on the upside. A ECH bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on ECH, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current ECH IV rank near 29.15% 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 ECH at 33.00%. As a Financial Services name, ECH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ECH-specific events.

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

Frequently asked questions

What is a bear put spread on ECH?: A bear put spread on ECH is the bear put spread strategy applied to ECH (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 ECH etf trading near $39.73, the strikes shown on this page are snapped to the nearest listed ECH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ECH 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 ECH bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 33.00%), the computed maximum profit is $128.50 per contract and the computed maximum loss is -$71.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ECH bear put spread?: The breakeven for the ECH bear put spread priced on this page is roughly $39.29 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 ECH market-implied 1-standard-deviation expected move is approximately 9.46%; 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 ECH?: Bear put spreads on ECH reduce the cost of a bearish ECH 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 ECH implied volatility affect this bear put spread?: ECH ATM IV is at 33.00% with IV rank near 29.15%, 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.