How are AM 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 AM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 23.70%), the computed maximum profit is $62.50 per contract and the computed maximum loss is -$37.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AM bear put spread?

The breakeven for the AM bear put spread priced on this page is roughly $21.63 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 AM market-implied 1-standard-deviation expected move is approximately 6.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

AM ATM IV is at 23.70% with IV rank near 2.47%, 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.

AM Bear Put Spread Strategy

AM (Antero Midstream Corporation), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

Antero Midstream Corporation owns, operates, and develops midstream energy infrastructure. It operates through Gathering and Processing, and Water Handling segments. The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources' wells in West Virginia and Ohio. The Water Handling segment delivers fresh water; and offers pumping stations, water storage, and blending facilities. The company was incorporated in 2013 and is headquartered in Denver, Colorado.

AM (Antero Midstream Corporation) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $10.24B, a trailing P/E of 24.88, a beta of 0.66 versus the broader market, a 52-week range of 16.77-23.835, average daily share volume of 2.8M, a public-listing history dating back to 2017, approximately 616 full-time employees. These structural characteristics shape how AM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.66 indicates AM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AM 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 AM?

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 AM snapshot

As of May 15, 2026, spot at $21.95, ATM IV 23.70%, IV rank 2.47%, expected move 6.79%. The bear put spread on AM 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 AM specifically: AM IV at 23.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a AM bear put spread, with a market-implied 1-standard-deviation move of approximately 6.79% (roughly $1.49 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 AM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AM should anchor to the underlying notional of $21.95 per share and to the trader's directional view on AM stock.

AM bear put spread setup

The AM 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 AM near $21.95, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AM 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 AM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$22.00	$0.63
Sell 1	Put	$21.00	$0.25

AM bear put spread risk and reward

Net Premium / Debit: -$37.50
Max Profit (per contract): $62.50
Max Loss (per contract): -$37.50
Breakeven(s): $21.63
Risk / Reward Ratio: 1.667

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.

AM bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on AM. 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%	+$62.50
$4.86	-77.8%	+$62.50
$9.71	-55.7%	+$62.50
$14.57	-33.6%	+$62.50
$19.42	-11.5%	+$62.50
$24.27	+10.6%	-$37.50
$29.12	+32.7%	-$37.50
$33.98	+54.8%	-$37.50
$38.83	+76.9%	-$37.50
$43.68	+99.0%	-$37.50

When traders use bear put spread on AM

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

AM thesis for this bear put spread

The market-implied 1-standard-deviation range for AM extends from approximately $20.46 on the downside to $23.44 on the upside. A AM bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on AM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current AM IV rank near 2.47% 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 AM at 23.70%. As a Energy name, AM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AM-specific events.

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

Frequently asked questions

What is a bear put spread on AM?: A bear put spread on AM is the bear put spread strategy applied to AM (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 AM stock trading near $21.95, the strikes shown on this page are snapped to the nearest listed AM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AM 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 AM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 23.70%), the computed maximum profit is $62.50 per contract and the computed maximum loss is -$37.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AM bear put spread?: The breakeven for the AM bear put spread priced on this page is roughly $21.63 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 AM market-implied 1-standard-deviation expected move is approximately 6.79%; 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 AM?: Bear put spreads on AM reduce the cost of a bearish AM 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 AM implied volatility affect this bear put spread?: AM ATM IV is at 23.70% with IV rank near 2.47%, 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.