QABA Bear Put Spread Strategy
QABA (First Trust NASDAQ ABA Community Bank Index Fund), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The First Trust NASDAQ ABA Community Bank Index Fund is an exchange-traded fund. The objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the Nasdaq OMX ABA Community Bank Index.
QABA (First Trust NASDAQ ABA Community Bank Index Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $118.4M, a beta of 1.10 versus the broader market, a 52-week range of 51.25-64.25, average daily share volume of 7K, a public-listing history dating back to 2009. These structural characteristics shape how QABA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.10 places QABA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. QABA 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 QABA?
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 QABA snapshot
As of May 15, 2026, spot at $59.93, ATM IV 23.80%, IV rank 42.74%, expected move 6.82%. The bear put spread on QABA 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 154-day expiry.
Why this bear put spread structure on QABA specifically: QABA IV at 23.80% 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 6.82% (roughly $4.09 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated QABA expiries trade a higher absolute premium for lower per-day decay. Position sizing on QABA should anchor to the underlying notional of $59.93 per share and to the trader's directional view on QABA etf.
QABA bear put spread setup
The QABA 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 QABA near $59.93, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QABA chain at a 154-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 QABA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $60.00 | $3.63 |
| Sell 1 | Put | $57.00 | $2.43 |
QABA bear put spread risk and reward
- Net Premium / Debit
- -$120.00
- Max Profit (per contract)
- $180.00
- Max Loss (per contract)
- -$120.00
- Breakeven(s)
- $58.80
- Risk / Reward Ratio
- 1.500
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.
QABA bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on QABA. 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% | +$180.00 |
| $13.26 | -77.9% | +$180.00 |
| $26.51 | -55.8% | +$180.00 |
| $39.76 | -33.7% | +$180.00 |
| $53.01 | -11.5% | +$180.00 |
| $66.26 | +10.6% | -$120.00 |
| $79.51 | +32.7% | -$120.00 |
| $92.76 | +54.8% | -$120.00 |
| $106.01 | +76.9% | -$120.00 |
| $119.26 | +99.0% | -$120.00 |
When traders use bear put spread on QABA
Bear put spreads on QABA reduce the cost of a bearish QABA etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
QABA thesis for this bear put spread
The market-implied 1-standard-deviation range for QABA extends from approximately $55.84 on the downside to $64.02 on the upside. A QABA bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on QABA, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current QABA IV rank near 42.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on QABA should anchor more to the directional view and the expected-move geometry. As a Financial Services name, QABA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QABA-specific events.
QABA 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. QABA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QABA alongside the broader basket even when QABA-specific fundamentals are unchanged. Long-premium structures like a bear put spread on QABA 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 QABA chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on QABA?
- A bear put spread on QABA is the bear put spread strategy applied to QABA (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 QABA etf trading near $59.93, the strikes shown on this page are snapped to the nearest listed QABA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QABA 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 QABA bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 23.80%), the computed maximum profit is $180.00 per contract and the computed maximum loss is -$120.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QABA bear put spread?
- The breakeven for the QABA bear put spread priced on this page is roughly $58.80 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 QABA market-implied 1-standard-deviation expected move is approximately 6.82%; 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 QABA?
- Bear put spreads on QABA reduce the cost of a bearish QABA 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 QABA implied volatility affect this bear put spread?
- QABA ATM IV is at 23.80% with IV rank near 42.74%, 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.