AADX Bear Put Spread Strategy
AADX (Applied Aerospace & Defense, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Applied Aerospace & Defense, Inc. engages in the provision of integrated manufacturing solutions. It focuses on serving the following markets: Space and Launch Systems, Defense Aviation and Airborne Systems, and C5ISR and Precision Strike Systems. The company was founded on October 7, 2022 and is headquartered in Huntsville, AL.
AADX (Applied Aerospace & Defense, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $3.27B, a beta of 2.05 versus the broader market, a 52-week range of 16.57-24.24, average daily share volume of 1.7M, a public-listing history dating back to 2026, approximately 2K full-time employees. These structural characteristics shape how AADX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.05 indicates AADX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bear put spread on AADX?
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.
AADX snapshot
As of August 14, 2026, spot at $18.11, ATM IV 64.60%, expected move 18.52%. The bear put spread on AADX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bear put spread structure on AADX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AADX is inferred from ATM IV at 64.60% alone, with a market-implied 1-standard-deviation move of approximately 18.52% (roughly $3.35 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AADX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AADX should anchor to the underlying notional of $18.11 per share and to the trader's directional view on AADX stock.
AADX bear put spread setup
The AADX 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 AADX at $18.11 on that close, the first option leg uses a $18.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AADX chain at a 35-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 AADX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $18.11 | N/A |
| Sell 1 | Put | $17.20 | N/A |
AADX bear put spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
AADX bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on AADX. 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.
When traders use bear put spread on AADX
Bear put spreads on AADX reduce the cost of a bearish AADX stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
AADX thesis for this bear put spread
The market-implied 1-standard-deviation range for AADX extends from approximately $14.76 on the downside to $21.46 on the upside. A AADX bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on AADX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. As a Industrials name, AADX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AADX-specific events.
AADX 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. AADX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AADX alongside the broader basket even when AADX-specific fundamentals are unchanged. Long-premium structures like a bear put spread on AADX 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 AADX chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on AADX?
- A bear put spread on AADX is the bear put spread strategy applied to AADX (stock). 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 AADX stock at $18.11 on the most recent close, the strikes shown on this page are snapped to the nearest listed AADX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AADX 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 AADX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 64.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AADX bear put spread?
- The breakeven for the AADX bear put spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 AADX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.52%; 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 AADX?
- Bear put spreads on AADX reduce the cost of a bearish AADX stock 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 AADX implied volatility affect this bear put spread?
- Current AADX ATM IV is 64.60%; IV rank context is unavailable in the current snapshot.