REGL Bear Put Spread Strategy
REGL (ProShares - S&P MidCap 400 Dividend Aristocrats ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
Under ordinary market conditions, this fund is structured to commit a significant majority—at least 80% of its overall investments—to the specific stocks that make up its reference index. This underlying index is composed of a minimum of 40 individual companies, each assigned an identical weighting within the portfolio. Furthermore, to promote diversification, no single industry sector is permitted to constitute more than 30% of the index's total value.
REGL (ProShares - S&P MidCap 400 Dividend Aristocrats ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $1.77B, a beta of 0.65 versus the broader market, a 52-week range of 80.52-95.97, average daily share volume of 63K, a public-listing history dating back to 2015. These structural characteristics shape how REGL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates REGL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. REGL 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 REGL?
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.
REGL snapshot
As of August 14, 2026, spot at $95.77, ATM IV 18.30%, IV rank 25.61%, expected move 5.25%. The bear put spread on REGL below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.
Why this bear put spread structure on REGL specifically: REGL IV at 18.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a REGL bear put spread, with a market-implied 1-standard-deviation move of approximately 5.25% (roughly $5.02 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated REGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on REGL should anchor to the underlying notional of $95.77 per share and to the trader's directional view on REGL etf.
REGL bear put spread setup
The REGL bear put spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With REGL at $95.77 on that close, the first option leg uses a $96.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REGL chain at a 63-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 REGL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $96.00 | $2.25 |
| Sell 1 | Put | $91.00 | $0.86 |
REGL bear put spread risk and reward
- Net Premium / Debit
- -$139.00
- Max Profit (per contract)
- $361.00
- Max Loss (per contract)
- -$139.00
- Breakeven(s)
- $94.61
- Risk / Reward Ratio
- 2.597
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.
REGL bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on REGL. 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% | +$361.00 |
| $21.18 | -77.9% | +$361.00 |
| $42.36 | -55.8% | +$361.00 |
| $63.53 | -33.7% | +$361.00 |
| $84.71 | -11.6% | +$361.00 |
| $105.88 | +10.6% | -$139.00 |
| $127.06 | +32.7% | -$139.00 |
| $148.23 | +54.8% | -$139.00 |
| $169.40 | +76.9% | -$139.00 |
| $190.58 | +99.0% | -$139.00 |
When traders use bear put spread on REGL
Bear put spreads on REGL reduce the cost of a bearish REGL etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
REGL thesis for this bear put spread
The market-implied 1-standard-deviation range for REGL extends from approximately $90.75 on the downside to $100.79 on the upside. A REGL bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on REGL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current REGL IV rank near 25.61% 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 REGL at 18.30%. As a Financial Services name, REGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REGL-specific events.
REGL 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. REGL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REGL alongside the broader basket even when REGL-specific fundamentals are unchanged. Long-premium structures like a bear put spread on REGL 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 REGL chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on REGL?
- A bear put spread on REGL is the bear put spread strategy applied to REGL (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 REGL etf at $95.77 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed REGL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are REGL 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 REGL bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.30%), the computed maximum profit is $361.00 per contract and the computed maximum loss is -$139.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a REGL bear put spread?
- The breakeven for the REGL bear put spread priced on this page is roughly $94.61 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The REGL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.25%; 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 REGL?
- Bear put spreads on REGL reduce the cost of a bearish REGL 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 REGL implied volatility affect this bear put spread?
- REGL ATM IV is at 18.30% with IV rank near 25.61%, 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.