How are ALGN 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 ALGN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 54.49%), the computed maximum profit is $435.00 per contract and the computed maximum loss is -$565.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ALGN bear put spread?

The breakeven for the ALGN bear put spread priced on this page is roughly $169.35 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 ALGN market-implied 1-standard-deviation expected move is approximately 15.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

ALGN ATM IV is at 54.49% with IV rank near 56.53%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

ALGN Bear Put Spread Strategy

ALGN (Align Technology, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

Align Technology, Inc. is a medical technology enterprise that develops, produces, and markets its leading products: Invisalign transparent dental aligners and iTero digital intraoral scanners, along with related services. These offerings serve a wide range of dental professionals, including orthodontists, general dentists, and those specializing in restorative and cosmetic dentistry. The company's operations are divided into two main business units: "Clear Aligner" and "Scanners and Services." The Clear Aligner segment offers a variety of solutions. Its comprehensive products include the full Invisalign treatment for teenage patients, designed to address complex orthodontic needs such as mandibular advancement, patient compliance tracking, and managing tooth eruption. It also features specialized Invisalign First Phase I and Phase 2 packages for younger children, typically aged seven to ten, who have mixed dentition (a combination of primary and permanent teeth). Beyond these, the segment provides non-comprehensive aligner options like Invisalign moderate, lite, express, and Invisalign Go.

ALGN (Align Technology, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $12.78B, a trailing P/E of 29.65, a beta of 1.67 versus the broader market, a 52-week range of 122-208.31, average daily share volume of 1.0M, a public-listing history dating back to 2001, approximately 21K full-time employees. These structural characteristics shape how ALGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.67 indicates ALGN 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 ALGN?

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 ALGN snapshot

As of June 29, 2026, spot at $173.50, ATM IV 54.49%, IV rank 56.53%, expected move 15.62%. The bear put spread on ALGN 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 32-day expiry.

Why this bear put spread structure on ALGN specifically: ALGN IV at 54.49% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 15.62% (roughly $27.10 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALGN should anchor to the underlying notional of $173.50 per share and to the trader's directional view on ALGN stock.

ALGN bear put spread setup

The ALGN 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 ALGN near $173.50, the first option leg uses a $175.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALGN chain at a 32-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 ALGN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$175.00	$13.10
Sell 1	Put	$165.00	$7.45

ALGN bear put spread risk and reward

Net Premium / Debit: -$565.00
Max Profit (per contract): $435.00
Max Loss (per contract): -$565.00
Breakeven(s): $169.35
Risk / Reward Ratio: 0.770

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.

ALGN bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on ALGN. 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%	+$435.00
$38.37	-77.9%	+$435.00
$76.73	-55.8%	+$435.00
$115.09	-33.7%	+$435.00
$153.45	-11.6%	+$435.00
$191.81	+10.6%	-$565.00
$230.17	+32.7%	-$565.00
$268.53	+54.8%	-$565.00
$306.90	+76.9%	-$565.00
$345.26	+99.0%	-$565.00

When traders use bear put spread on ALGN

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

ALGN thesis for this bear put spread

The market-implied 1-standard-deviation range for ALGN extends from approximately $146.40 on the downside to $200.60 on the upside. A ALGN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on ALGN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current ALGN IV rank near 56.53% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on ALGN should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ALGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALGN-specific events.

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

Frequently asked questions

What is a bear put spread on ALGN?: A bear put spread on ALGN is the bear put spread strategy applied to ALGN (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 ALGN stock trading near $173.50, the strikes shown on this page are snapped to the nearest listed ALGN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ALGN 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 ALGN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 54.49%), the computed maximum profit is $435.00 per contract and the computed maximum loss is -$565.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ALGN bear put spread?: The breakeven for the ALGN bear put spread priced on this page is roughly $169.35 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 ALGN market-implied 1-standard-deviation expected move is approximately 15.62%; 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 ALGN?: Bear put spreads on ALGN reduce the cost of a bearish ALGN 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 ALGN implied volatility affect this bear put spread?: ALGN ATM IV is at 54.49% with IV rank near 56.53%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.