How are ERTH 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 ERTH bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 24.20%), the computed maximum profit is $131.00 per contract and the computed maximum loss is -$69.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ERTH bear put spread?

The breakeven for the ERTH bear put spread priced on this page is roughly $46.31 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 ERTH market-implied 1-standard-deviation expected move is approximately 6.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

ERTH ATM IV is at 24.20% with IV rank near 2.65%, 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.

ERTH Bear Put Spread Strategy

ERTH (Invesco MSCI Sustainable Future ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The Invesco MSCI Sustainable Future ETF (ERTH) is an exchange-traded fund structured to mirror the performance of the MSCI Global Environment Select Index. To achieve its investment objective, the Fund generally dedicates at least 90% of its total assets to the specific securities that constitute this benchmark index. The underlying Index is composed of companies distinguished by their focus on developing products or delivering services that foster a more environmentally sound global economy. These companies contribute to this goal by promoting the more efficient use of the world's resources. The design of the Index emphasizes significant exposure to six key environmental impact areas: alternative energy solutions, enhancements in energy efficiency, sustainable building practices, responsible water management, measures for pollution prevention and control, and sustainable agricultural techniques. Both the Fund and the Index are reviewed and rebalanced every three months.

ERTH (Invesco MSCI Sustainable Future ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $151.9M, a beta of 1.10 versus the broader market, a 52-week range of 42.19-51.45, average daily share volume of 3K, a public-listing history dating back to 2006. These structural characteristics shape how ERTH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.10 places ERTH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ERTH 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 ERTH?

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 ERTH snapshot

As of June 29, 2026, spot at $47.17, ATM IV 24.20%, IV rank 2.65%, expected move 6.94%. The bear put spread on ERTH 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 ERTH specifically: ERTH IV at 24.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ERTH bear put spread, with a market-implied 1-standard-deviation move of approximately 6.94% (roughly $3.27 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 ERTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on ERTH should anchor to the underlying notional of $47.17 per share and to the trader's directional view on ERTH etf.

ERTH bear put spread setup

The ERTH 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 ERTH near $47.17, the first option leg uses a $47.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ERTH 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 ERTH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$47.00	$1.05
Sell 1	Put	$45.00	$0.36

ERTH bear put spread risk and reward

Net Premium / Debit: -$69.00
Max Profit (per contract): $131.00
Max Loss (per contract): -$69.00
Breakeven(s): $46.31
Risk / Reward Ratio: 1.899

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.

ERTH bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on ERTH. 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%	+$131.00
$10.44	-77.9%	+$131.00
$20.87	-55.8%	+$131.00
$31.30	-33.7%	+$131.00
$41.72	-11.5%	+$131.00
$52.15	+10.6%	-$69.00
$62.58	+32.7%	-$69.00
$73.01	+54.8%	-$69.00
$83.44	+76.9%	-$69.00
$93.87	+99.0%	-$69.00

When traders use bear put spread on ERTH

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

ERTH thesis for this bear put spread

The market-implied 1-standard-deviation range for ERTH extends from approximately $43.90 on the downside to $50.44 on the upside. A ERTH bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on ERTH, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current ERTH IV rank near 2.65% 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 ERTH at 24.20%. As a Financial Services name, ERTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ERTH-specific events.

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

Frequently asked questions

What is a bear put spread on ERTH?: A bear put spread on ERTH is the bear put spread strategy applied to ERTH (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 ERTH etf trading near $47.17, the strikes shown on this page are snapped to the nearest listed ERTH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ERTH 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 ERTH bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 24.20%), the computed maximum profit is $131.00 per contract and the computed maximum loss is -$69.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ERTH bear put spread?: The breakeven for the ERTH bear put spread priced on this page is roughly $46.31 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 ERTH market-implied 1-standard-deviation expected move is approximately 6.94%; 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 ERTH?: Bear put spreads on ERTH reduce the cost of a bearish ERTH 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 ERTH implied volatility affect this bear put spread?: ERTH ATM IV is at 24.20% with IV rank near 2.65%, 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.