How are KRE 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 KRE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 26.05%), the computed maximum profit is $232.50 per contract and the computed maximum loss is -$117.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KRE bear put spread?

The breakeven for the KRE bear put spread priced on this page is roughly $65.83 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 KRE market-implied 1-standard-deviation expected move is approximately 7.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

KRE ATM IV is at 26.05% with IV rank near 15.97%, 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.

KRE Bear Put Spread Strategy

KRE (State Street SPDR S&P Regional Banking ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The State Street SPDR S&P Regional Banking ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Regional Banks Select Industry Index (the "Index")Seeks to provide exposure the regional banks segment of the S&P TMIMembership in the Select Industry Indices is based on the GICS classification, as well as liquidity and market cap requirementsSeeks to track a modified equal weighted index which provides the potential for unconcentrated industry exposure across large, mid and small cap stocksAllows investors to take strategic or tactical positions at a more targeted level than traditional sector based investing

KRE (State Street SPDR S&P Regional Banking ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.08B, a beta of 1.31 versus the broader market, a 52-week range of 55.37-74.08, average daily share volume of 17.6M, a public-listing history dating back to 2006. These structural characteristics shape how KRE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.31 indicates KRE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. KRE 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 KRE?

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 KRE snapshot

As of May 15, 2026, spot at $66.97, ATM IV 26.05%, IV rank 15.97%, expected move 7.47%. The bear put spread on KRE 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 28-day expiry.

Why this bear put spread structure on KRE specifically: KRE IV at 26.05% is on the cheap side of its 1-year range, which favors premium-buying structures like a KRE bear put spread, with a market-implied 1-standard-deviation move of approximately 7.47% (roughly $5.00 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRE should anchor to the underlying notional of $66.97 per share and to the trader's directional view on KRE etf.

KRE bear put spread setup

The KRE 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 KRE near $66.97, the first option leg uses a $67.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRE chain at a 28-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 KRE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$67.00	$1.91
Sell 1	Put	$63.50	$0.73

KRE bear put spread risk and reward

Net Premium / Debit: -$117.50
Max Profit (per contract): $232.50
Max Loss (per contract): -$117.50
Breakeven(s): $65.83
Risk / Reward Ratio: 1.979

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.

KRE bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on KRE. 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%	+$232.50
$14.82	-77.9%	+$232.50
$29.62	-55.8%	+$232.50
$44.43	-33.7%	+$232.50
$59.24	-11.5%	+$232.50
$74.04	+10.6%	-$117.50
$88.85	+32.7%	-$117.50
$103.65	+54.8%	-$117.50
$118.46	+76.9%	-$117.50
$133.27	+99.0%	-$117.50

When traders use bear put spread on KRE

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

KRE thesis for this bear put spread

The market-implied 1-standard-deviation range for KRE extends from approximately $61.97 on the downside to $71.97 on the upside. A KRE bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on KRE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current KRE IV rank near 15.97% 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 KRE at 26.05%. As a Financial Services name, KRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRE-specific events.

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

Frequently asked questions

What is a bear put spread on KRE?: A bear put spread on KRE is the bear put spread strategy applied to KRE (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 KRE etf trading near $66.97, the strikes shown on this page are snapped to the nearest listed KRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KRE 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 KRE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 26.05%), the computed maximum profit is $232.50 per contract and the computed maximum loss is -$117.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KRE bear put spread?: The breakeven for the KRE bear put spread priced on this page is roughly $65.83 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 KRE market-implied 1-standard-deviation expected move is approximately 7.47%; 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 KRE?: Bear put spreads on KRE reduce the cost of a bearish KRE 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 KRE implied volatility affect this bear put spread?: KRE ATM IV is at 26.05% with IV rank near 15.97%, 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.