ALHC Bear Put Spread Strategy
ALHC (Alignment Healthcare, Inc.), in the Healthcare sector, (Medical - Healthcare Plans industry), listed on NASDAQ.
Alignment Healthcare, Inc., a tech-enabled Medicare advantage company, operates consumer-centric health care platform. It provides customized health care in the United States to seniors and those who need it through its Medicare advantage plans. The company owns Medicare advantage plans in the states of California, North Carolina, and Nevada. It also coordinates and provides covered health care services, including professional, institutional, and ancillary services to members enrolled in certain benefit plans of unaffiliated Medicare Advantage Health Maintenance Organizations. The company was founded in 2013 and is based in Orange, California.
ALHC (Alignment Healthcare, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Plans, with a market capitalization of approximately $3.78B, a trailing P/E of 189.43, a beta of 1.27 versus the broader market, a 52-week range of 11.625-23.87, average daily share volume of 3.6M, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how ALHC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.27 places ALHC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 189.43 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a bear put spread on ALHC?
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 ALHC snapshot
As of May 15, 2026, spot at $15.82, ATM IV 49.60%, IV rank 29.90%, expected move 14.22%. The bear put spread on ALHC 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 ALHC specifically: ALHC IV at 49.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a ALHC bear put spread, with a market-implied 1-standard-deviation move of approximately 14.22% (roughly $2.25 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 ALHC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALHC should anchor to the underlying notional of $15.82 per share and to the trader's directional view on ALHC stock.
ALHC bear put spread setup
The ALHC 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 ALHC near $15.82, the first option leg uses a $15.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALHC 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 ALHC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $15.82 | N/A |
| Sell 1 | Put | $15.03 | N/A |
ALHC 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.
ALHC bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on ALHC. 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 ALHC
Bear put spreads on ALHC reduce the cost of a bearish ALHC stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
ALHC thesis for this bear put spread
The market-implied 1-standard-deviation range for ALHC extends from approximately $13.57 on the downside to $18.07 on the upside. A ALHC bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on ALHC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current ALHC IV rank near 29.90% 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 ALHC at 49.60%. As a Healthcare name, ALHC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALHC-specific events.
ALHC 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. ALHC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALHC alongside the broader basket even when ALHC-specific fundamentals are unchanged. Long-premium structures like a bear put spread on ALHC 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 ALHC chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on ALHC?
- A bear put spread on ALHC is the bear put spread strategy applied to ALHC (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 ALHC stock trading near $15.82, the strikes shown on this page are snapped to the nearest listed ALHC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALHC 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 ALHC bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 49.60%), 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 ALHC bear put spread?
- The breakeven for the ALHC bear put spread priced on this page is no defined breakeven on the modeled curve 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 ALHC market-implied 1-standard-deviation expected move is approximately 14.22%; 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 ALHC?
- Bear put spreads on ALHC reduce the cost of a bearish ALHC 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 ALHC implied volatility affect this bear put spread?
- ALHC ATM IV is at 49.60% with IV rank near 29.90%, 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.