How are TDIV 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 TDIV bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 21.00%), the computed maximum profit is $407.50 per contract and the computed maximum loss is -$192.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TDIV bear put spread?

The breakeven for the TDIV bear put spread priced on this page is roughly $113.08 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 TDIV market-implied 1-standard-deviation expected move is approximately 6.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

TDIV ATM IV is at 21.00% with IV rank near 2.58%, 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.

TDIV Bear Put Spread Strategy

TDIV (First Trust NASDAQ Technology Dividend Index Fund), in the Financial Services sector, (Asset Management - Income industry), listed on NASDAQ.

The First Trust NASDAQ Technology Dividend Index Fund (TDIV) functions as an exchange-traded fund (ETF). Its core objective is to mirror the overall returns, encompassing both share value appreciation and dividend income, of a particular stock market benchmark known as the Nasdaq Technology Dividend Index. This performance alignment is calculated before any of the Fund's own management fees or operational expenses are deducted.

TDIV (First Trust NASDAQ Technology Dividend Index Fund) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $4.60B, a beta of 1.30 versus the broader market, a 52-week range of 88.58-128.5, average daily share volume of 116K, a public-listing history dating back to 2012. These structural characteristics shape how TDIV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.30 places TDIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TDIV 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 TDIV?

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 TDIV snapshot

As of June 30, 2026, spot at $115.22, ATM IV 21.00%, IV rank 2.58%, expected move 6.02%. The bear put spread on TDIV 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 17-day expiry.

Why this bear put spread structure on TDIV specifically: TDIV IV at 21.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a TDIV bear put spread, with a market-implied 1-standard-deviation move of approximately 6.02% (roughly $6.94 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TDIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDIV should anchor to the underlying notional of $115.22 per share and to the trader's directional view on TDIV etf.

TDIV bear put spread setup

The TDIV 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 TDIV near $115.22, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDIV chain at a 17-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 TDIV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$115.00	$2.43
Sell 1	Put	$109.00	$0.50

TDIV bear put spread risk and reward

Net Premium / Debit: -$192.50
Max Profit (per contract): $407.50
Max Loss (per contract): -$192.50
Breakeven(s): $113.08
Risk / Reward Ratio: 2.117

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.

TDIV bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on TDIV. 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%	+$407.50
$25.48	-77.9%	+$407.50
$50.96	-55.8%	+$407.50
$76.43	-33.7%	+$407.50
$101.91	-11.6%	+$407.50
$127.38	+10.6%	-$192.50
$152.86	+32.7%	-$192.50
$178.33	+54.8%	-$192.50
$203.81	+76.9%	-$192.50
$229.28	+99.0%	-$192.50

When traders use bear put spread on TDIV

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

TDIV thesis for this bear put spread

The market-implied 1-standard-deviation range for TDIV extends from approximately $108.28 on the downside to $122.16 on the upside. A TDIV bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on TDIV, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TDIV IV rank near 2.58% 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 TDIV at 21.00%. As a Financial Services name, TDIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDIV-specific events.

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

Frequently asked questions

What is a bear put spread on TDIV?: A bear put spread on TDIV is the bear put spread strategy applied to TDIV (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 TDIV etf trading near $115.22, the strikes shown on this page are snapped to the nearest listed TDIV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TDIV 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 TDIV bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 21.00%), the computed maximum profit is $407.50 per contract and the computed maximum loss is -$192.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TDIV bear put spread?: The breakeven for the TDIV bear put spread priced on this page is roughly $113.08 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 TDIV market-implied 1-standard-deviation expected move is approximately 6.02%; 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 TDIV?: Bear put spreads on TDIV reduce the cost of a bearish TDIV 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 TDIV implied volatility affect this bear put spread?: TDIV ATM IV is at 21.00% with IV rank near 2.58%, 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.