How are FEPI 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 FEPI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 21.80%), the computed maximum profit is $160.00 per contract and the computed maximum loss is -$140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FEPI bear put spread?

The breakeven for the FEPI bear put spread priced on this page is roughly $43.60 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 FEPI market-implied 1-standard-deviation expected move is approximately 6.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

FEPI ATM IV is at 21.80% with IV rank near 3.98%, 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.

FEPI Bear Put Spread Strategy

FEPI (REX FANG & Innovation Equity Premium Income ETF), in the Financial Services sector, (Asset Management - Income industry), listed on NASDAQ.

FEPI employs a covered call strategy, aiming for a balance between generating income and participating in potential gains within the technology sector. Specifically, the fund holds the stocks of its benchmark, the Solactive FANG Innovation Index, and writes slightly out-of-the-money call options on them. This approach capitalizes on the volatility of big-tech firms that is reflected in the option premiums, while limiting some of the potential stock gains. It also provides a small buffer against declines in stock prices. Note that the buffer is limited to the options premiums and may not fully offset underlying security losses. The benchmark is an equal-weighted index comprised of 15 US technology companies, eight of which are core holdings: Apple, Alphabet, Amazon, Meta, Microsoft, Netflix, Nvidia, and Tesla.

FEPI (REX FANG & Innovation Equity Premium Income ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $677.2M, a beta of 1.00 versus the broader market, a 52-week range of 37.9-49.68, average daily share volume of 175K, a public-listing history dating back to 2023. These structural characteristics shape how FEPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.00 places FEPI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FEPI 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 FEPI?

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 FEPI snapshot

As of May 15, 2026, spot at $44.69, ATM IV 21.80%, IV rank 3.98%, expected move 6.25%. The bear put spread on FEPI 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 FEPI specifically: FEPI IV at 21.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a FEPI bear put spread, with a market-implied 1-standard-deviation move of approximately 6.25% (roughly $2.79 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 FEPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on FEPI should anchor to the underlying notional of $44.69 per share and to the trader's directional view on FEPI etf.

FEPI bear put spread setup

The FEPI 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 FEPI near $44.69, the first option leg uses a $45.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FEPI 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 FEPI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$45.00	$1.75
Sell 1	Put	$42.00	$0.35

FEPI bear put spread risk and reward

Net Premium / Debit: -$140.00
Max Profit (per contract): $160.00
Max Loss (per contract): -$140.00
Breakeven(s): $43.60
Risk / Reward Ratio: 1.143

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.

FEPI bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on FEPI. 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%	+$160.00
$9.89	-77.9%	+$160.00
$19.77	-55.8%	+$160.00
$29.65	-33.7%	+$160.00
$39.53	-11.5%	+$160.00
$49.41	+10.6%	-$140.00
$59.29	+32.7%	-$140.00
$69.17	+54.8%	-$140.00
$79.05	+76.9%	-$140.00
$88.93	+99.0%	-$140.00

When traders use bear put spread on FEPI

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

FEPI thesis for this bear put spread

The market-implied 1-standard-deviation range for FEPI extends from approximately $41.90 on the downside to $47.48 on the upside. A FEPI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on FEPI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FEPI IV rank near 3.98% 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 FEPI at 21.80%. As a Financial Services name, FEPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FEPI-specific events.

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

Frequently asked questions

What is a bear put spread on FEPI?: A bear put spread on FEPI is the bear put spread strategy applied to FEPI (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 FEPI etf trading near $44.69, the strikes shown on this page are snapped to the nearest listed FEPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FEPI 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 FEPI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 21.80%), the computed maximum profit is $160.00 per contract and the computed maximum loss is -$140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FEPI bear put spread?: The breakeven for the FEPI bear put spread priced on this page is roughly $43.60 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 FEPI market-implied 1-standard-deviation expected move is approximately 6.25%; 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 FEPI?: Bear put spreads on FEPI reduce the cost of a bearish FEPI 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 FEPI implied volatility affect this bear put spread?: FEPI ATM IV is at 21.80% with IV rank near 3.98%, 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.