How are FDT 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 FDT bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 418.30%), the computed maximum profit is $368.50 per contract and the computed maximum loss is -$131.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FDT bear put spread?

The breakeven for the FDT bear put spread priced on this page is roughly $92.69 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 FDT market-implied 1-standard-deviation expected move is approximately 119.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

FDT ATM IV is at 418.30% with IV rank near 83.75%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

FDT Bear Put Spread Strategy

FDT (First Trust Developed Markets ex-US AlphaDEX Fund), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The First Trust Developed Markets ex-US AlphaDEX Fund is an exchange-traded fund whose investment objective is to generally replicate the total return (price and yield) of the Nasdaq AlphaDEX Developed Markets Ex-US Index, prior to accounting for its own fees and expenses.

FDT (First Trust Developed Markets ex-US AlphaDEX Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $911.6M, a beta of 1.08 versus the broader market, a 52-week range of 67.39-101.32, average daily share volume of 123K, a public-listing history dating back to 2011. These structural characteristics shape how FDT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places FDT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FDT 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 FDT?

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 FDT snapshot

As of June 29, 2026, spot at $94.06, ATM IV 418.30%, IV rank 83.75%, expected move 119.92%. The bear put spread on FDT 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 FDT specifically: FDT IV at 418.30% is rich versus its 1-year range, which makes a premium-buying FDT bear put spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 119.92% (roughly $112.80 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 FDT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDT should anchor to the underlying notional of $94.06 per share and to the trader's directional view on FDT etf.

FDT bear put spread setup

The FDT 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 FDT near $94.06, the first option leg uses a $94.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDT 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 FDT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$94.00	$1.53
Sell 1	Put	$89.00	$0.21

FDT bear put spread risk and reward

Net Premium / Debit: -$131.50
Max Profit (per contract): $368.50
Max Loss (per contract): -$131.50
Breakeven(s): $92.69
Risk / Reward Ratio: 2.802

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.

FDT bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on FDT. 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%	+$368.50
$20.81	-77.9%	+$368.50
$41.60	-55.8%	+$368.50
$62.40	-33.7%	+$368.50
$83.19	-11.6%	+$368.50
$103.99	+10.6%	-$131.50
$124.79	+32.7%	-$131.50
$145.58	+54.8%	-$131.50
$166.38	+76.9%	-$131.50
$187.17	+99.0%	-$131.50

When traders use bear put spread on FDT

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

FDT thesis for this bear put spread

The market-implied 1-standard-deviation range for FDT extends from approximately $-18.74 on the downside to $206.86 on the upside. A FDT bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on FDT, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FDT IV rank near 83.75% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on FDT at 418.30%. As a Financial Services name, FDT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDT-specific events.

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

Frequently asked questions

What is a bear put spread on FDT?: A bear put spread on FDT is the bear put spread strategy applied to FDT (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 FDT etf trading near $94.06, the strikes shown on this page are snapped to the nearest listed FDT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FDT 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 FDT bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 418.30%), the computed maximum profit is $368.50 per contract and the computed maximum loss is -$131.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FDT bear put spread?: The breakeven for the FDT bear put spread priced on this page is roughly $92.69 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 FDT market-implied 1-standard-deviation expected move is approximately 119.92%; 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 FDT?: Bear put spreads on FDT reduce the cost of a bearish FDT 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 FDT implied volatility affect this bear put spread?: FDT ATM IV is at 418.30% with IV rank near 83.75%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.