HBR Bear Put Spread Strategy
HBR (Canary HBAR ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Trust’s investment objective is to seek to provide exposure to the value of the HBAR, the native asset of the Hedera Network ("HBAR"), held by the Trust, less the expenses of the Trust’s operations and other liabilities. In seeking to achieve its investment objective, the Trust will hold HBAR.
HBR (Canary HBAR ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $16.8M, a beta of 0.96 versus the broader market, a 52-week range of 10.26-28.92, average daily share volume of 43K, a public-listing history dating back to 2025. These structural characteristics shape how HBR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places HBR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bear put spread on HBR?
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 HBR snapshot
As of May 15, 2026, spot at $12.69, ATM IV 38.50%, expected move 11.04%. The bear put spread on HBR 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 HBR specifically: IV rank is unavailable in the current snapshot, so regime-based timing for HBR is inferred from ATM IV at 38.50% alone, with a market-implied 1-standard-deviation move of approximately 11.04% (roughly $1.40 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 HBR expiries trade a higher absolute premium for lower per-day decay. Position sizing on HBR should anchor to the underlying notional of $12.69 per share and to the trader's directional view on HBR etf.
HBR bear put spread setup
The HBR 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 HBR near $12.69, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HBR 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 HBR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $13.00 | $1.43 |
| Sell 1 | Put | $12.00 | $0.80 |
HBR bear put spread risk and reward
- Net Premium / Debit
- -$62.50
- Max Profit (per contract)
- $37.50
- Max Loss (per contract)
- -$62.50
- Breakeven(s)
- $12.38
- Risk / Reward Ratio
- 0.600
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.
HBR bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on HBR. 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 | -99.9% | +$37.50 |
| $2.81 | -77.8% | +$37.50 |
| $5.62 | -55.7% | +$37.50 |
| $8.42 | -33.6% | +$37.50 |
| $11.23 | -11.5% | +$37.50 |
| $14.03 | +10.6% | -$62.50 |
| $16.84 | +32.7% | -$62.50 |
| $19.64 | +54.8% | -$62.50 |
| $22.45 | +76.9% | -$62.50 |
| $25.25 | +99.0% | -$62.50 |
When traders use bear put spread on HBR
Bear put spreads on HBR reduce the cost of a bearish HBR etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
HBR thesis for this bear put spread
The market-implied 1-standard-deviation range for HBR extends from approximately $11.29 on the downside to $14.09 on the upside. A HBR bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on HBR, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. As a Financial Services name, HBR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HBR-specific events.
HBR 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. HBR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HBR alongside the broader basket even when HBR-specific fundamentals are unchanged. Long-premium structures like a bear put spread on HBR 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 HBR chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on HBR?
- A bear put spread on HBR is the bear put spread strategy applied to HBR (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 HBR etf trading near $12.69, the strikes shown on this page are snapped to the nearest listed HBR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HBR 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 HBR bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 38.50%), the computed maximum profit is $37.50 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HBR bear put spread?
- The breakeven for the HBR bear put spread priced on this page is roughly $12.38 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 HBR market-implied 1-standard-deviation expected move is approximately 11.04%; 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 HBR?
- Bear put spreads on HBR reduce the cost of a bearish HBR 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 HBR implied volatility affect this bear put spread?
- Current HBR ATM IV is 38.50%; IV rank context is unavailable in the current snapshot.