URTH Bear Put Spread Strategy
URTH (iShares MSCI World ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares MSCI World ETF seeks to track the investment results of an index composed of developed market equities.
URTH (iShares MSCI World ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.11B, a beta of 0.97 versus the broader market, a 52-week range of 159.63-201.88, average daily share volume of 994K, a public-listing history dating back to 2012. These structural characteristics shape how URTH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places URTH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. URTH 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 URTH?
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 URTH snapshot
As of May 15, 2026, spot at $200.81, ATM IV 14.30%, IV rank 2.76%, expected move 4.10%. The bear put spread on URTH 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 URTH specifically: URTH IV at 14.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a URTH bear put spread, with a market-implied 1-standard-deviation move of approximately 4.10% (roughly $8.23 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 URTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on URTH should anchor to the underlying notional of $200.81 per share and to the trader's directional view on URTH etf.
URTH bear put spread setup
The URTH 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 URTH near $200.81, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URTH 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 URTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $200.00 | $3.95 |
| Sell 1 | Put | $190.00 | $1.38 |
URTH bear put spread risk and reward
- Net Premium / Debit
- -$257.50
- Max Profit (per contract)
- $742.50
- Max Loss (per contract)
- -$257.50
- Breakeven(s)
- $197.43
- Risk / Reward Ratio
- 2.883
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.
URTH bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on URTH. 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% | +$742.50 |
| $44.41 | -77.9% | +$742.50 |
| $88.81 | -55.8% | +$742.50 |
| $133.21 | -33.7% | +$742.50 |
| $177.61 | -11.6% | +$742.50 |
| $222.01 | +10.6% | -$257.50 |
| $266.40 | +32.7% | -$257.50 |
| $310.80 | +54.8% | -$257.50 |
| $355.20 | +76.9% | -$257.50 |
| $399.60 | +99.0% | -$257.50 |
When traders use bear put spread on URTH
Bear put spreads on URTH reduce the cost of a bearish URTH etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
URTH thesis for this bear put spread
The market-implied 1-standard-deviation range for URTH extends from approximately $192.58 on the downside to $209.04 on the upside. A URTH bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on URTH, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current URTH IV rank near 2.76% 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 URTH at 14.30%. As a Financial Services name, URTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URTH-specific events.
URTH 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. URTH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move URTH alongside the broader basket even when URTH-specific fundamentals are unchanged. Long-premium structures like a bear put spread on URTH 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 URTH chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on URTH?
- A bear put spread on URTH is the bear put spread strategy applied to URTH (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 URTH etf trading near $200.81, the strikes shown on this page are snapped to the nearest listed URTH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are URTH 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 URTH bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 14.30%), the computed maximum profit is $742.50 per contract and the computed maximum loss is -$257.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a URTH bear put spread?
- The breakeven for the URTH bear put spread priced on this page is roughly $197.43 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 URTH market-implied 1-standard-deviation expected move is approximately 4.10%; 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 URTH?
- Bear put spreads on URTH reduce the cost of a bearish URTH 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 URTH implied volatility affect this bear put spread?
- URTH ATM IV is at 14.30% with IV rank near 2.76%, 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.