FHLC Bear Put Spread Strategy
FHLC (Fidelity MSCI Health Care Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Tracks the performance of the MSCI USA IMI Health Care Index.
FHLC (Fidelity MSCI Health Care Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.87B, a beta of 0.64 versus the broader market, a 52-week range of 60.35-77.1, average daily share volume of 181K, a public-listing history dating back to 2013. These structural characteristics shape how FHLC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates FHLC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FHLC 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 FHLC?
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 FHLC snapshot
As of May 15, 2026, spot at $70.02, ATM IV 17.20%, IV rank 1.75%, expected move 4.93%. The bear put spread on FHLC 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 FHLC specifically: FHLC IV at 17.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a FHLC bear put spread, with a market-implied 1-standard-deviation move of approximately 4.93% (roughly $3.45 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 FHLC expiries trade a higher absolute premium for lower per-day decay. Position sizing on FHLC should anchor to the underlying notional of $70.02 per share and to the trader's directional view on FHLC etf.
FHLC bear put spread setup
The FHLC 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 FHLC near $70.02, the first option leg uses a $70.02 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FHLC 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 FHLC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $70.02 | N/A |
| Sell 1 | Put | $66.52 | N/A |
FHLC bear put spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
FHLC bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on FHLC. 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.
When traders use bear put spread on FHLC
Bear put spreads on FHLC reduce the cost of a bearish FHLC etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
FHLC thesis for this bear put spread
The market-implied 1-standard-deviation range for FHLC extends from approximately $66.57 on the downside to $73.47 on the upside. A FHLC bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on FHLC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FHLC IV rank near 1.75% 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 FHLC at 17.20%. As a Financial Services name, FHLC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FHLC-specific events.
FHLC 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. FHLC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FHLC alongside the broader basket even when FHLC-specific fundamentals are unchanged. Long-premium structures like a bear put spread on FHLC 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 FHLC chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on FHLC?
- A bear put spread on FHLC is the bear put spread strategy applied to FHLC (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 FHLC etf trading near $70.02, the strikes shown on this page are snapped to the nearest listed FHLC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FHLC 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 FHLC bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 17.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FHLC bear put spread?
- The breakeven for the FHLC bear put spread priced on this page is no defined breakeven on the modeled curve 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 FHLC market-implied 1-standard-deviation expected move is approximately 4.93%; 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 FHLC?
- Bear put spreads on FHLC reduce the cost of a bearish FHLC 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 FHLC implied volatility affect this bear put spread?
- FHLC ATM IV is at 17.20% with IV rank near 1.75%, 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.