How are MEMX 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 MEMX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 33.20%), the computed maximum profit is $118.00 per contract and the computed maximum loss is -$82.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MEMX bear put spread?

The breakeven for the MEMX bear put spread priced on this page is roughly $45.18 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 MEMX market-implied 1-standard-deviation expected move is approximately 9.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

MEMX ATM IV is at 33.20% with IV rank near 13.48%, 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.

MEMX Bear Put Spread Strategy

MEMX (Matthews Emerging Markets ex China Active ETF MEMX), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Under normal circumstances, the fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in emerging market countries excluding China. The fund may also invest in companies located in developed countries or China; however, the fund may not invest in any company located in a developed country or China if, at the time of purchase, more than 20% of the fund’s assets are invested in a combination of developed market and Chinese companies.

MEMX (Matthews Emerging Markets ex China Active ETF MEMX) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $45.0M, a beta of 1.10 versus the broader market, a 52-week range of 30.281-48.265, average daily share volume of 4K, a public-listing history dating back to 2023. These structural characteristics shape how MEMX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.10 places MEMX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MEMX 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 MEMX?

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 MEMX snapshot

As of May 15, 2026, spot at $46.10, ATM IV 33.20%, IV rank 13.48%, expected move 9.52%. The bear put spread on MEMX 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 MEMX specifically: MEMX IV at 33.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a MEMX bear put spread, with a market-implied 1-standard-deviation move of approximately 9.52% (roughly $4.39 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 MEMX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MEMX should anchor to the underlying notional of $46.10 per share and to the trader's directional view on MEMX etf.

MEMX bear put spread setup

The MEMX 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 MEMX near $46.10, the first option leg uses a $46.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MEMX 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 MEMX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$46.00	$1.75
Sell 1	Put	$44.00	$0.93

MEMX bear put spread risk and reward

Net Premium / Debit: -$82.00
Max Profit (per contract): $118.00
Max Loss (per contract): -$82.00
Breakeven(s): $45.18
Risk / Reward Ratio: 1.439

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.

MEMX bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on MEMX. 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%	+$118.00
$10.20	-77.9%	+$118.00
$20.39	-55.8%	+$118.00
$30.59	-33.7%	+$118.00
$40.78	-11.5%	+$118.00
$50.97	+10.6%	-$82.00
$61.16	+32.7%	-$82.00
$71.35	+54.8%	-$82.00
$81.54	+76.9%	-$82.00
$91.74	+99.0%	-$82.00

When traders use bear put spread on MEMX

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

MEMX thesis for this bear put spread

The market-implied 1-standard-deviation range for MEMX extends from approximately $41.71 on the downside to $50.49 on the upside. A MEMX bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on MEMX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current MEMX IV rank near 13.48% 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 MEMX at 33.20%. As a Financial Services name, MEMX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MEMX-specific events.

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

Frequently asked questions

What is a bear put spread on MEMX?: A bear put spread on MEMX is the bear put spread strategy applied to MEMX (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 MEMX etf trading near $46.10, the strikes shown on this page are snapped to the nearest listed MEMX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MEMX 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 MEMX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 33.20%), the computed maximum profit is $118.00 per contract and the computed maximum loss is -$82.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MEMX bear put spread?: The breakeven for the MEMX bear put spread priced on this page is roughly $45.18 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 MEMX market-implied 1-standard-deviation expected move is approximately 9.52%; 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 MEMX?: Bear put spreads on MEMX reduce the cost of a bearish MEMX 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 MEMX implied volatility affect this bear put spread?: MEMX ATM IV is at 33.20% with IV rank near 13.48%, 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.