How are PSIL 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 PSIL bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 52.00%), the computed maximum profit is $147.50 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PSIL bear put spread?

The breakeven for the PSIL bear put spread priced on this page is roughly $24.48 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 PSIL market-implied 1-standard-deviation expected move is approximately 14.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

PSIL ATM IV is at 52.00% with IV rank near 5.95%, 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.

PSIL Bear Put Spread Strategy

PSIL (AdvisorShares Psychedelics ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

This actively managed Exchange Traded Fund (ETF) endeavors to meet its investment goals by typically allocating a minimum of 80% of its total net assets (including any capital secured through borrowing for investment purposes) into the securities of specific companies. To be eligible for inclusion, these companies must either derive at least half of their net revenue from, or commit 50% or more of their assets to, psychedelic compounds, their derivatives, or other financial instruments exhibiting similar economic characteristics. The fund's primary holdings consist of publicly traded life sciences firms focused on psychedelic medical treatments, in addition to other businesses involved in the broader psychedelics sector. It is important to note that this fund maintains a concentrated, non-diversified portfolio.

PSIL (AdvisorShares Psychedelics ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $24.0M, a beta of 0.64 versus the broader market, a 52-week range of 13.85-23.8, average daily share volume of 41K, a public-listing history dating back to 2021. These structural characteristics shape how PSIL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.64 indicates PSIL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PSIL 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 PSIL?

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 PSIL snapshot

As of June 29, 2026, spot at $24.59, ATM IV 52.00%, IV rank 5.95%, expected move 14.91%. The bear put spread on PSIL 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 PSIL specifically: PSIL IV at 52.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a PSIL bear put spread, with a market-implied 1-standard-deviation move of approximately 14.91% (roughly $3.67 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 PSIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSIL should anchor to the underlying notional of $24.59 per share and to the trader's directional view on PSIL etf.

PSIL bear put spread setup

The PSIL 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 PSIL near $24.59, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSIL 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 PSIL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$25.00	$1.45
Sell 1	Put	$23.00	$0.93

PSIL bear put spread risk and reward

Net Premium / Debit: -$52.50
Max Profit (per contract): $147.50
Max Loss (per contract): -$52.50
Breakeven(s): $24.48
Risk / Reward Ratio: 2.810

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.

PSIL bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on PSIL. 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%	+$147.50
$5.45	-77.9%	+$147.50
$10.88	-55.7%	+$147.50
$16.32	-33.6%	+$147.50
$21.75	-11.5%	+$147.50
$27.19	+10.6%	-$52.50
$32.63	+32.7%	-$52.50
$38.06	+54.8%	-$52.50
$43.50	+76.9%	-$52.50
$48.93	+99.0%	-$52.50

When traders use bear put spread on PSIL

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

PSIL thesis for this bear put spread

The market-implied 1-standard-deviation range for PSIL extends from approximately $20.92 on the downside to $28.26 on the upside. A PSIL bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on PSIL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current PSIL IV rank near 5.95% 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 PSIL at 52.00%. As a Financial Services name, PSIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSIL-specific events.

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

Frequently asked questions

What is a bear put spread on PSIL?: A bear put spread on PSIL is the bear put spread strategy applied to PSIL (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 PSIL etf trading near $24.59, the strikes shown on this page are snapped to the nearest listed PSIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PSIL 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 PSIL bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 52.00%), the computed maximum profit is $147.50 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSIL bear put spread?: The breakeven for the PSIL bear put spread priced on this page is roughly $24.48 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 PSIL market-implied 1-standard-deviation expected move is approximately 14.91%; 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 PSIL?: Bear put spreads on PSIL reduce the cost of a bearish PSIL 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 PSIL implied volatility affect this bear put spread?: PSIL ATM IV is at 52.00% with IV rank near 5.95%, 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.