NERD Bear Put Spread Strategy
NERD (Listed Funds Trust - Roundhill Video Games ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Roundhill believes that video games, the largest form of entertainment globally, will continue to achieve significant growth in the coming decades. The Roundhill Video Games ETF (“NERD”) is an actively-managed ETF.
NERD (Listed Funds Trust - Roundhill Video Games ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $15.9M, a beta of 0.98 versus the broader market, a 52-week range of 20.104-28.81, average daily share volume of 2K, a public-listing history dating back to 2019. These structural characteristics shape how NERD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places NERD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NERD 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 NERD?
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 NERD snapshot
As of May 15, 2026, spot at $20.62, ATM IV 34.80%, IV rank 30.97%, expected move 9.98%. The bear put spread on NERD 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 NERD specifically: NERD IV at 34.80% 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 9.98% (roughly $2.06 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 NERD expiries trade a higher absolute premium for lower per-day decay. Position sizing on NERD should anchor to the underlying notional of $20.62 per share and to the trader's directional view on NERD etf.
NERD bear put spread setup
The NERD 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 NERD near $20.62, the first option leg uses a $20.62 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NERD 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 NERD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $20.62 | N/A |
| Sell 1 | Put | $19.59 | N/A |
NERD bear put spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
NERD bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on NERD. 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.
When traders use bear put spread on NERD
Bear put spreads on NERD reduce the cost of a bearish NERD etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
NERD thesis for this bear put spread
The market-implied 1-standard-deviation range for NERD extends from approximately $18.56 on the downside to $22.68 on the upside. A NERD bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on NERD, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current NERD IV rank near 30.97% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on NERD should anchor more to the directional view and the expected-move geometry. As a Financial Services name, NERD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NERD-specific events.
NERD 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. NERD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NERD alongside the broader basket even when NERD-specific fundamentals are unchanged. Long-premium structures like a bear put spread on NERD 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 NERD chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on NERD?
- A bear put spread on NERD is the bear put spread strategy applied to NERD (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 NERD etf trading near $20.62, the strikes shown on this page are snapped to the nearest listed NERD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NERD 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 NERD bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 34.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NERD bear put spread?
- The breakeven for the NERD bear put spread priced on this page is no defined breakeven on the modeled curve 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 NERD market-implied 1-standard-deviation expected move is approximately 9.98%; 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 NERD?
- Bear put spreads on NERD reduce the cost of a bearish NERD 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 NERD implied volatility affect this bear put spread?
- NERD ATM IV is at 34.80% with IV rank near 30.97%, 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.