AGL Bear Put Spread Strategy
AGL (Agilon Health, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
agilon health, inc. offers healthcare services for seniors through primary care physicians in the communities of the United States. As of December 31, 2021, it served approximately 238,000 senior members, which included 186,300 medicare advantage members and 51,700 medicare fee-for-service beneficiaries. The company was formerly known as Agilon Health Topco, Inc. and changed its name to agilon health, inc. in March 2021. agilon health, inc. was founded in 2016 and is based in Austin, Texas.
AGL (Agilon Health, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.20B, a beta of 2.31 versus the broader market, a 52-week range of 7.48-74.69, average daily share volume of 391K, a public-listing history dating back to 2021, approximately 1K full-time employees. These structural characteristics shape how AGL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.31 indicates AGL 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 AGL?
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 AGL snapshot
As of May 15, 2026, spot at $83.70, ATM IV 103.50%, IV rank 19.18%, expected move 29.67%. The bear put spread on AGL 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 AGL specifically: AGL IV at 103.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a AGL bear put spread, with a market-implied 1-standard-deviation move of approximately 29.67% (roughly $24.84 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 AGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGL should anchor to the underlying notional of $83.70 per share and to the trader's directional view on AGL stock.
AGL bear put spread setup
The AGL 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 AGL near $83.70, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGL 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 AGL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $85.00 | $11.00 |
| Sell 1 | Put | $80.00 | $8.70 |
AGL bear put spread risk and reward
- Net Premium / Debit
- -$230.00
- Max Profit (per contract)
- $270.00
- Max Loss (per contract)
- -$230.00
- Breakeven(s)
- $82.70
- Risk / Reward Ratio
- 1.174
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.
AGL bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on AGL. 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% | +$270.00 |
| $18.52 | -77.9% | +$270.00 |
| $37.02 | -55.8% | +$270.00 |
| $55.53 | -33.7% | +$270.00 |
| $74.03 | -11.6% | +$270.00 |
| $92.54 | +10.6% | -$230.00 |
| $111.04 | +32.7% | -$230.00 |
| $129.55 | +54.8% | -$230.00 |
| $148.05 | +76.9% | -$230.00 |
| $166.56 | +99.0% | -$230.00 |
When traders use bear put spread on AGL
Bear put spreads on AGL reduce the cost of a bearish AGL stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
AGL thesis for this bear put spread
The market-implied 1-standard-deviation range for AGL extends from approximately $58.86 on the downside to $108.54 on the upside. A AGL bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on AGL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current AGL IV rank near 19.18% 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 AGL at 103.50%. As a Healthcare name, AGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGL-specific events.
AGL 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. AGL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGL alongside the broader basket even when AGL-specific fundamentals are unchanged. Long-premium structures like a bear put spread on AGL 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 AGL chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on AGL?
- A bear put spread on AGL is the bear put spread strategy applied to AGL (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 AGL stock trading near $83.70, the strikes shown on this page are snapped to the nearest listed AGL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AGL 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 AGL bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 103.50%), the computed maximum profit is $270.00 per contract and the computed maximum loss is -$230.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGL bear put spread?
- The breakeven for the AGL bear put spread priced on this page is roughly $82.70 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 AGL market-implied 1-standard-deviation expected move is approximately 29.67%; 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 AGL?
- Bear put spreads on AGL reduce the cost of a bearish AGL 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 AGL implied volatility affect this bear put spread?
- AGL ATM IV is at 103.50% with IV rank near 19.18%, 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.