ARVN Bear Put Spread Strategy
ARVN (Arvinas, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Arvinas, Inc. is a biopharmaceutical company in the clinical development stage, dedicated to identifying, advancing, and marketing innovative therapies designed to eliminate disease-causing proteins. The company's pipeline features several promising candidates. These include Bavdegalutamide, a proteolysis targeting chimera (PROTAC) protein degrader, currently in Phase I clinical trials, which specifically targets the androgen receptor (AR) protein to treat metastatic castration-resistant prostate cancer (mCRPC) in men. Another key PROTAC protein degrader is ARV-471, which targets the estrogen receptor protein for patients suffering from metastatic ER-positive/HER2-negative breast cancer. Furthermore, Arvinas is developing ARV-766, an investigational orally bioavailable PROTAC protein degrader also aimed at treating mCRPC in men. The company has strategic alliances with major pharmaceutical entities including Pfizer Inc., Genentech, Inc., F.
ARVN (Arvinas, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $516.2M, a beta of 1.75 versus the broader market, a 52-week range of 6.06-14.51, average daily share volume of 881K, a public-listing history dating back to 2018, approximately 430 full-time employees. These structural characteristics shape how ARVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.75 indicates ARVN 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 ARVN?
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 ARVN snapshot
As of June 29, 2026, spot at $8.44, ATM IV 65.80%, IV rank 7.01%, expected move 18.86%. The bear put spread on ARVN 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 18-day expiry.
Why this bear put spread structure on ARVN specifically: ARVN IV at 65.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a ARVN bear put spread, with a market-implied 1-standard-deviation move of approximately 18.86% (roughly $1.59 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ARVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARVN should anchor to the underlying notional of $8.44 per share and to the trader's directional view on ARVN stock.
ARVN bear put spread setup
The ARVN 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 ARVN near $8.44, the first option leg uses a $8.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARVN chain at a 18-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 ARVN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $8.44 | N/A |
| Sell 1 | Put | $8.02 | N/A |
ARVN 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.
ARVN bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on ARVN. 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 ARVN
Bear put spreads on ARVN reduce the cost of a bearish ARVN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
ARVN thesis for this bear put spread
The market-implied 1-standard-deviation range for ARVN extends from approximately $6.85 on the downside to $10.03 on the upside. A ARVN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on ARVN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current ARVN IV rank near 7.01% 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 ARVN at 65.80%. As a Healthcare name, ARVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARVN-specific events.
ARVN 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. ARVN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ARVN alongside the broader basket even when ARVN-specific fundamentals are unchanged. Long-premium structures like a bear put spread on ARVN 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 ARVN chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on ARVN?
- A bear put spread on ARVN is the bear put spread strategy applied to ARVN (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 ARVN stock trading near $8.44, the strikes shown on this page are snapped to the nearest listed ARVN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ARVN 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 ARVN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 65.80%), 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 ARVN bear put spread?
- The breakeven for the ARVN 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 ARVN market-implied 1-standard-deviation expected move is approximately 18.86%; 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 ARVN?
- Bear put spreads on ARVN reduce the cost of a bearish ARVN 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 ARVN implied volatility affect this bear put spread?
- ARVN ATM IV is at 65.80% with IV rank near 7.01%, 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.