How are WTMF 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 WTMF bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 22.10%), the computed maximum profit is $130.00 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WTMF bear put spread?

The breakeven for the WTMF bear put spread priced on this page is roughly $40.30 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 WTMF market-implied 1-standard-deviation expected move is approximately 6.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

WTMF ATM IV is at 22.10% with IV rank near 14.17%, 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.

WTMF Bear Put Spread Strategy

WTMF (WisdomTree Managed Futures Strategy Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The fund normally invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in "managed futures". It is an actively managed exchange traded fund ("ETF") that seeks to achieve positive total returns in rising or falling markets that are not directly correlated to broad market equity or fixed income returns. It is non-diversified.

WTMF (WisdomTree Managed Futures Strategy Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $224.0M, a beta of 0.27 versus the broader market, a 52-week range of 34.36-41.43, average daily share volume of 30K, a public-listing history dating back to 2011. These structural characteristics shape how WTMF etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.27 indicates WTMF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WTMF 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 WTMF?

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 WTMF snapshot

As of May 15, 2026, spot at $40.94, ATM IV 22.10%, IV rank 14.17%, expected move 6.34%. The bear put spread on WTMF 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 WTMF specifically: WTMF IV at 22.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a WTMF bear put spread, with a market-implied 1-standard-deviation move of approximately 6.34% (roughly $2.59 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 WTMF expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTMF should anchor to the underlying notional of $40.94 per share and to the trader's directional view on WTMF etf.

WTMF bear put spread setup

The WTMF 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 WTMF near $40.94, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTMF 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 WTMF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$41.00	$1.08
Sell 1	Put	$39.00	$0.38

WTMF bear put spread risk and reward

Net Premium / Debit: -$70.00
Max Profit (per contract): $130.00
Max Loss (per contract): -$70.00
Breakeven(s): $40.30
Risk / Reward Ratio: 1.857

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.

WTMF bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on WTMF. 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%	+$130.00
$9.06	-77.9%	+$130.00
$18.11	-55.8%	+$130.00
$27.16	-33.7%	+$130.00
$36.21	-11.5%	+$130.00
$45.26	+10.6%	-$70.00
$54.32	+32.7%	-$70.00
$63.37	+54.8%	-$70.00
$72.42	+76.9%	-$70.00
$81.47	+99.0%	-$70.00

When traders use bear put spread on WTMF

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

WTMF thesis for this bear put spread

The market-implied 1-standard-deviation range for WTMF extends from approximately $38.35 on the downside to $43.53 on the upside. A WTMF bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on WTMF, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current WTMF IV rank near 14.17% 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 WTMF at 22.10%. As a Financial Services name, WTMF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTMF-specific events.

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

Frequently asked questions

What is a bear put spread on WTMF?: A bear put spread on WTMF is the bear put spread strategy applied to WTMF (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 WTMF etf trading near $40.94, the strikes shown on this page are snapped to the nearest listed WTMF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WTMF 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 WTMF bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 22.10%), the computed maximum profit is $130.00 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WTMF bear put spread?: The breakeven for the WTMF bear put spread priced on this page is roughly $40.30 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 WTMF market-implied 1-standard-deviation expected move is approximately 6.34%; 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 WTMF?: Bear put spreads on WTMF reduce the cost of a bearish WTMF 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 WTMF implied volatility affect this bear put spread?: WTMF ATM IV is at 22.10% with IV rank near 14.17%, 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.