How are AVAV 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 AVAV bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 78.10%), the computed maximum profit is $475.00 per contract and the computed maximum loss is -$525.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVAV bear put spread?

The breakeven for the AVAV bear put spread priced on this page is roughly $189.75 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AVAV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

AVAV ATM IV is at 78.10% with IV rank near 46.96%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

AVAV Bear Put Spread Strategy

AVAV (AeroVironment, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.

AeroVironment Inc. develops, produces, delivers, and services a diverse array of robotic systems for governmental and commercial entities across the globe. The company's operations are segmented into Unmanned Aircraft Systems (UAS), Tactical Missile Systems (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS). Its core clientele, particularly for UAS, TMS, and unmanned ground vehicles along with their accompanying support, includes agencies within the U.S. Department of Defense and international allied governments. AeroVironment also specializes in the engineering and manufacturing of unmanned aerial vehicles, encompassing airborne platforms, integrated payloads, ground control units, and essential support equipment. Beyond these core systems, the firm provides comprehensive support for small UAS products, offering spare components, modular payloads, power supplies (batteries, chargers), repair services, and dedicated customer assistance, alongside various aircraft, handheld control systems, and accessories.

AVAV (AeroVironment, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $9.81B, a beta of 1.41 versus the broader market, a 52-week range of 135.2-417.86, average daily share volume of 1.5M, a public-listing history dating back to 2007, approximately 4K full-time employees. These structural characteristics shape how AVAV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.41 indicates AVAV 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 AVAV?

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.

AVAV snapshot

As of August 14, 2026, spot at $192.78, ATM IV 78.10%, IV rank 46.96%, expected move 22.39%. The bear put spread on AVAV below is built from the August 14, 2026 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 AVAV specifically: AVAV IV at 78.10% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 22.39% (roughly $43.16 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 AVAV expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVAV should anchor to the underlying notional of $192.78 per share and to the trader's directional view on AVAV stock.

AVAV bear put spread setup

The AVAV bear put spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AVAV at $192.78 on that close, the first option leg uses a $195.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVAV 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 AVAV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$195.00	$17.65
Sell 1	Put	$185.00	$12.40

AVAV bear put spread risk and reward

Net Premium / Debit: -$525.00
Max Profit (per contract): $475.00
Max Loss (per contract): -$525.00
Breakeven(s): $189.75
Risk / Reward Ratio: 0.905

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.

AVAV bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on AVAV. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$475.00
$42.63	-77.9%	+$475.00
$85.26	-55.8%	+$475.00
$127.88	-33.7%	+$475.00
$170.50	-11.6%	+$475.00
$213.13	+10.6%	-$525.00
$255.75	+32.7%	-$525.00
$298.38	+54.8%	-$525.00
$341.00	+76.9%	-$525.00
$383.62	+99.0%	-$525.00

When traders use bear put spread on AVAV

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

AVAV thesis for this bear put spread

The market-implied 1-standard-deviation range for AVAV extends from approximately $149.62 on the downside to $235.94 on the upside. A AVAV bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on AVAV, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current AVAV IV rank near 46.96% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on AVAV should anchor more to the directional view and the expected-move geometry. As a Industrials name, AVAV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVAV-specific events.

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

Frequently asked questions

What is a bear put spread on AVAV?: A bear put spread on AVAV is the bear put spread strategy applied to AVAV (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 AVAV stock at $192.78 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AVAV chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AVAV 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 AVAV bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 78.10%), the computed maximum profit is $475.00 per contract and the computed maximum loss is -$525.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVAV bear put spread?: The breakeven for the AVAV bear put spread priced on this page is roughly $189.75 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AVAV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.39%; 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 AVAV?: Bear put spreads on AVAV reduce the cost of a bearish AVAV 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 AVAV implied volatility affect this bear put spread?: AVAV ATM IV is at 78.10% with IV rank near 46.96%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.