How are KDEF 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 KDEF bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 70.60%), the computed maximum profit is $130.00 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KDEF bear put spread?

The breakeven for the KDEF bear put spread priced on this page is roughly $40.30 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 KDEF market-implied 1-standard-deviation expected move is approximately 20.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

KDEF ATM IV is at 70.60% with IV rank near 9.79%, 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.

KDEF Bear Put Spread Strategy

KDEF (PLUS Korea Defense Industry Index ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

This investment product typically allocates its capital to the underlying assets that constitute its benchmark index. That index is specifically engineered to reflect the financial results of South Korean enterprises with a strong connection to the defense sector, officially referred to as "Korea Defense Companies." During standard operating periods, the fund is obligated to invest a minimum of 80% of its total net assets—encompassing any borrowed funds utilized for investment—in the constituent securities of this index. It functions as a non-diversified portfolio.

KDEF (PLUS Korea Defense Industry Index ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $38.9M, a beta of 1.27 versus the broader market, a 52-week range of 37.8-67.41, average daily share volume of 155K, a public-listing history dating back to 2025. These structural characteristics shape how KDEF etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.27 places KDEF roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. KDEF 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 KDEF?

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 KDEF snapshot

As of June 29, 2026, spot at $41.41, ATM IV 70.60%, IV rank 9.79%, expected move 20.24%. The bear put spread on KDEF 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 KDEF specifically: KDEF IV at 70.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a KDEF bear put spread, with a market-implied 1-standard-deviation move of approximately 20.24% (roughly $8.38 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 KDEF expiries trade a higher absolute premium for lower per-day decay. Position sizing on KDEF should anchor to the underlying notional of $41.41 per share and to the trader's directional view on KDEF etf.

KDEF bear put spread setup

The KDEF 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 KDEF near $41.41, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KDEF 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 KDEF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$41.00	$2.60
Sell 1	Put	$39.00	$1.90

KDEF bear put spread risk and reward

Net Premium / Debit: -$70.00
Max Profit (per contract): $130.00
Max Loss (per contract): -$70.00
Breakeven(s): $40.30
Risk / Reward Ratio: 1.857

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.

KDEF bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on KDEF. 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%	+$130.00
$9.16	-77.9%	+$130.00
$18.32	-55.8%	+$130.00
$27.47	-33.7%	+$130.00
$36.63	-11.5%	+$130.00
$45.78	+10.6%	-$70.00
$54.94	+32.7%	-$70.00
$64.09	+54.8%	-$70.00
$73.25	+76.9%	-$70.00
$82.40	+99.0%	-$70.00

When traders use bear put spread on KDEF

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

KDEF thesis for this bear put spread

The market-implied 1-standard-deviation range for KDEF extends from approximately $33.03 on the downside to $49.79 on the upside. A KDEF bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on KDEF, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current KDEF IV rank near 9.79% 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 KDEF at 70.60%. As a Financial Services name, KDEF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KDEF-specific events.

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

Frequently asked questions

What is a bear put spread on KDEF?: A bear put spread on KDEF is the bear put spread strategy applied to KDEF (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 KDEF etf trading near $41.41, the strikes shown on this page are snapped to the nearest listed KDEF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KDEF 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 KDEF bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 70.60%), the computed maximum profit is $130.00 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KDEF bear put spread?: The breakeven for the KDEF bear put spread priced on this page is roughly $40.30 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 KDEF market-implied 1-standard-deviation expected move is approximately 20.24%; 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 KDEF?: Bear put spreads on KDEF reduce the cost of a bearish KDEF 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 KDEF implied volatility affect this bear put spread?: KDEF ATM IV is at 70.60% with IV rank near 9.79%, 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.