AUPH Bear Put Spread Strategy
AUPH (Aurinia Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Aurinia Pharmaceuticals Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies to treat various diseases with unmet medical need in the United States and internationally. The company offers LUPKYNIS for the treatment of adult patients with active lupus nephritis. It has a collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd. The company is headquartered in Victoria, Canada.
AUPH (Aurinia Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.06B, a trailing P/E of 7.12, a beta of 1.45 versus the broader market, a 52-week range of 7.285-16.88, average daily share volume of 1.2M, a public-listing history dating back to 2014, approximately 130 full-time employees. These structural characteristics shape how AUPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates AUPH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.12 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a bear put spread on AUPH?
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 AUPH snapshot
As of May 15, 2026, spot at $15.28, ATM IV 43.80%, IV rank 14.38%, expected move 12.56%. The bear put spread on AUPH 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 63-day expiry.
Why this bear put spread structure on AUPH specifically: AUPH IV at 43.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a AUPH bear put spread, with a market-implied 1-standard-deviation move of approximately 12.56% (roughly $1.92 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AUPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUPH should anchor to the underlying notional of $15.28 per share and to the trader's directional view on AUPH stock.
AUPH bear put spread setup
The AUPH 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 AUPH near $15.28, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUPH chain at a 63-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 AUPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $15.00 | $0.93 |
| Sell 1 | Put | $15.00 | $0.93 |
AUPH bear put spread risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $0.00
- Max Loss (per contract)
- $0.00
- 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.
AUPH bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on AUPH. 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 | -99.9% | $0.00 |
| $3.39 | -77.8% | $0.00 |
| $6.76 | -55.7% | $0.00 |
| $10.14 | -33.6% | $0.00 |
| $13.52 | -11.5% | $0.00 |
| $16.90 | +10.6% | $0.00 |
| $20.27 | +32.7% | $0.00 |
| $23.65 | +54.8% | $0.00 |
| $27.03 | +76.9% | $0.00 |
| $30.41 | +99.0% | $0.00 |
When traders use bear put spread on AUPH
Bear put spreads on AUPH reduce the cost of a bearish AUPH stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
AUPH thesis for this bear put spread
The market-implied 1-standard-deviation range for AUPH extends from approximately $13.36 on the downside to $17.20 on the upside. A AUPH bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on AUPH, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current AUPH IV rank near 14.38% 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 AUPH at 43.80%. As a Healthcare name, AUPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUPH-specific events.
AUPH 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. AUPH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AUPH alongside the broader basket even when AUPH-specific fundamentals are unchanged. Long-premium structures like a bear put spread on AUPH 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 AUPH chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on AUPH?
- A bear put spread on AUPH is the bear put spread strategy applied to AUPH (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 AUPH stock trading near $15.28, the strikes shown on this page are snapped to the nearest listed AUPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AUPH 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 AUPH bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 43.80%), the computed maximum profit is $0.00 per contract and the computed maximum loss is $0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AUPH bear put spread?
- The breakeven for the AUPH 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 AUPH market-implied 1-standard-deviation expected move is approximately 12.56%; 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 AUPH?
- Bear put spreads on AUPH reduce the cost of a bearish AUPH 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 AUPH implied volatility affect this bear put spread?
- AUPH ATM IV is at 43.80% with IV rank near 14.38%, 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.