How are AMBA 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 AMBA bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 100.52%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$285.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AMBA bear put spread?

The breakeven for the AMBA bear put spread priced on this page is roughly $78.15 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 AMBA market-implied 1-standard-deviation expected move is approximately 28.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

AMBA ATM IV is at 100.52% with IV rank near 98.15%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

AMBA Bear Put Spread Strategy

AMBA (Ambarella, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Ambarella, Inc. develops semiconductor solutions for video that enable high-definition (HD) and ultra HD compression, image processing, and deep neural network processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; and professional and home internet protocol security camera; robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.

AMBA (Ambarella, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $3.60B, a beta of 2.16 versus the broader market, a 52-week range of 48.3-96.69, average daily share volume of 866K, a public-listing history dating back to 2012, approximately 941 full-time employees. These structural characteristics shape how AMBA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.16 indicates AMBA 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 AMBA?

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 AMBA snapshot

As of May 15, 2026, spot at $81.28, ATM IV 100.52%, IV rank 98.15%, expected move 28.82%. The bear put spread on AMBA 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 28-day expiry.

Why this bear put spread structure on AMBA specifically: AMBA IV at 100.52% is rich versus its 1-year range, which makes a premium-buying AMBA bear put spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 28.82% (roughly $23.42 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AMBA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMBA should anchor to the underlying notional of $81.28 per share and to the trader's directional view on AMBA stock.

AMBA bear put spread setup

The AMBA 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 AMBA near $81.28, the first option leg uses a $81.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMBA chain at a 28-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 AMBA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$81.00	$9.15
Sell 1	Put	$77.00	$6.30

AMBA bear put spread risk and reward

Net Premium / Debit: -$285.00
Max Profit (per contract): $115.00
Max Loss (per contract): -$285.00
Breakeven(s): $78.15
Risk / Reward Ratio: 0.404

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.

AMBA bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on AMBA. 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%	+$115.00
$17.98	-77.9%	+$115.00
$35.95	-55.8%	+$115.00
$53.92	-33.7%	+$115.00
$71.89	-11.6%	+$115.00
$89.86	+10.6%	-$285.00
$107.83	+32.7%	-$285.00
$125.80	+54.8%	-$285.00
$143.77	+76.9%	-$285.00
$161.74	+99.0%	-$285.00

When traders use bear put spread on AMBA

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

AMBA thesis for this bear put spread

The market-implied 1-standard-deviation range for AMBA extends from approximately $57.86 on the downside to $104.70 on the upside. A AMBA bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on AMBA, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current AMBA IV rank near 98.15% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on AMBA at 100.52%. As a Technology name, AMBA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMBA-specific events.

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

Frequently asked questions

What is a bear put spread on AMBA?: A bear put spread on AMBA is the bear put spread strategy applied to AMBA (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 AMBA stock trading near $81.28, the strikes shown on this page are snapped to the nearest listed AMBA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AMBA 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 AMBA bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 100.52%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$285.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AMBA bear put spread?: The breakeven for the AMBA bear put spread priced on this page is roughly $78.15 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 AMBA market-implied 1-standard-deviation expected move is approximately 28.82%; 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 AMBA?: Bear put spreads on AMBA reduce the cost of a bearish AMBA 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 AMBA implied volatility affect this bear put spread?: AMBA ATM IV is at 100.52% with IV rank near 98.15%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.