LRNZ Bear Put Spread Strategy
LRNZ (TrueShares Technology, AI and Deep Learning ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Under normal circumstances, at least 80% of its net assets (plus any borrowings made for investment purposes) in the common stock of technology, artificial intelligence and deep learning companies. It may also invest in small and medium capitalized companies, as the Adviser believes these relatively smaller companies may provide above average capital appreciation and dividend yield. The fund is non-diversified.
LRNZ (TrueShares Technology, AI and Deep Learning ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $31.6M, a beta of 1.44 versus the broader market, a 52-week range of 37.89-52.879, average daily share volume of 4K, a public-listing history dating back to 2020. These structural characteristics shape how LRNZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.44 indicates LRNZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bear put spread on LRNZ?
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 LRNZ snapshot
As of May 15, 2026, spot at $50.74, ATM IV 37.50%, IV rank 30.29%, expected move 10.75%. The bear put spread on LRNZ 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 LRNZ specifically: LRNZ IV at 37.50% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 10.75% (roughly $5.46 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 LRNZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on LRNZ should anchor to the underlying notional of $50.74 per share and to the trader's directional view on LRNZ etf.
LRNZ bear put spread setup
The LRNZ 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 LRNZ near $50.74, the first option leg uses a $51.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LRNZ 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 LRNZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $51.00 | $2.40 |
| Sell 1 | Put | $48.00 | $1.13 |
LRNZ bear put spread risk and reward
- Net Premium / Debit
- -$127.00
- Max Profit (per contract)
- $173.00
- Max Loss (per contract)
- -$127.00
- Breakeven(s)
- $49.73
- Risk / Reward Ratio
- 1.362
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.
LRNZ bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on LRNZ. 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% | +$173.00 |
| $11.23 | -77.9% | +$173.00 |
| $22.45 | -55.8% | +$173.00 |
| $33.66 | -33.7% | +$173.00 |
| $44.88 | -11.5% | +$173.00 |
| $56.10 | +10.6% | -$127.00 |
| $67.32 | +32.7% | -$127.00 |
| $78.53 | +54.8% | -$127.00 |
| $89.75 | +76.9% | -$127.00 |
| $100.97 | +99.0% | -$127.00 |
When traders use bear put spread on LRNZ
Bear put spreads on LRNZ reduce the cost of a bearish LRNZ etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
LRNZ thesis for this bear put spread
The market-implied 1-standard-deviation range for LRNZ extends from approximately $45.28 on the downside to $56.20 on the upside. A LRNZ bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LRNZ, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LRNZ IV rank near 30.29% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on LRNZ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, LRNZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LRNZ-specific events.
LRNZ 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. LRNZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LRNZ alongside the broader basket even when LRNZ-specific fundamentals are unchanged. Long-premium structures like a bear put spread on LRNZ 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 LRNZ chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on LRNZ?
- A bear put spread on LRNZ is the bear put spread strategy applied to LRNZ (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 LRNZ etf trading near $50.74, the strikes shown on this page are snapped to the nearest listed LRNZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LRNZ 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 LRNZ bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 37.50%), the computed maximum profit is $173.00 per contract and the computed maximum loss is -$127.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LRNZ bear put spread?
- The breakeven for the LRNZ bear put spread priced on this page is roughly $49.73 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 LRNZ market-implied 1-standard-deviation expected move is approximately 10.75%; 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 LRNZ?
- Bear put spreads on LRNZ reduce the cost of a bearish LRNZ 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 LRNZ implied volatility affect this bear put spread?
- LRNZ ATM IV is at 37.50% with IV rank near 30.29%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.