AXON Bear Put Spread Strategy
AXON (Axon Enterprise, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.
Axon Enterprise, Inc., founded in 1993 and headquartered in Scottsdale, Arizona, was previously known as TASER International, Inc. until its rebranding in April 2017. The company specializes in the development, production, and sale of conducted energy devices (CEDs) marketed under its well-known TASER brand, catering to both domestic and international clients. Axon's operations are divided into two primary segments: TASER, and Software and Sensors. In addition to its signature TASER devices, such as the TASER 7, X26P, X2, and consumer models, along with their corresponding cartridges, Axon offers an extensive portfolio of hardware and cloud-based software. These solutions are designed to equip law enforcement agencies with the means to capture, securely archive, manage, share, and analyze video and other digital evidence. Key products in this category include on-officer body cameras, Axon Fleet in-car systems, the Axon Evidence digital evidence management platform, Axon Signal-enabled devices, extended hardware warranties, and vital accessories like docks, cartridges, and batteries.
AXON (Axon Enterprise, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $37.47B, a trailing P/E of 180.64, a beta of 1.42 versus the broader market, a 52-week range of 339.01-885.92, average daily share volume of 1.2M, a public-listing history dating back to 2001, approximately 5K full-time employees. These structural characteristics shape how AXON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.42 indicates AXON 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 180.64 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a bear put spread on AXON?
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 AXON snapshot
As of June 29, 2026, spot at $508.80, ATM IV 64.09%, IV rank 56.05%, expected move 18.38%. The bear put spread on AXON 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 32-day expiry.
Why this bear put spread structure on AXON specifically: AXON IV at 64.09% 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 18.38% (roughly $93.50 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AXON expiries trade a higher absolute premium for lower per-day decay. Position sizing on AXON should anchor to the underlying notional of $508.80 per share and to the trader's directional view on AXON stock.
AXON bear put spread setup
The AXON 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 AXON near $508.80, the first option leg uses a $510.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AXON chain at a 32-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 AXON shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $510.00 | $38.55 |
| Sell 1 | Put | $485.00 | $26.75 |
AXON bear put spread risk and reward
- Net Premium / Debit
- -$1,180.00
- Max Profit (per contract)
- $1,320.00
- Max Loss (per contract)
- -$1,180.00
- Breakeven(s)
- $498.20
- Risk / Reward Ratio
- 1.119
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.
AXON bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on AXON. 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% | +$1,320.00 |
| $112.51 | -77.9% | +$1,320.00 |
| $225.00 | -55.8% | +$1,320.00 |
| $337.50 | -33.7% | +$1,320.00 |
| $450.00 | -11.6% | +$1,320.00 |
| $562.50 | +10.6% | -$1,180.00 |
| $674.99 | +32.7% | -$1,180.00 |
| $787.49 | +54.8% | -$1,180.00 |
| $899.99 | +76.9% | -$1,180.00 |
| $1,012.49 | +99.0% | -$1,180.00 |
When traders use bear put spread on AXON
Bear put spreads on AXON reduce the cost of a bearish AXON stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
AXON thesis for this bear put spread
The market-implied 1-standard-deviation range for AXON extends from approximately $415.30 on the downside to $602.30 on the upside. A AXON bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on AXON, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current AXON IV rank near 56.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on AXON should anchor more to the directional view and the expected-move geometry. As a Industrials name, AXON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AXON-specific events.
AXON 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. AXON positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AXON alongside the broader basket even when AXON-specific fundamentals are unchanged. Long-premium structures like a bear put spread on AXON 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 AXON chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on AXON?
- A bear put spread on AXON is the bear put spread strategy applied to AXON (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 AXON stock trading near $508.80, the strikes shown on this page are snapped to the nearest listed AXON chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AXON 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 AXON bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 64.09%), the computed maximum profit is $1,320.00 per contract and the computed maximum loss is -$1,180.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AXON bear put spread?
- The breakeven for the AXON bear put spread priced on this page is roughly $498.20 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 AXON market-implied 1-standard-deviation expected move is approximately 18.38%; 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 AXON?
- Bear put spreads on AXON reduce the cost of a bearish AXON 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 AXON implied volatility affect this bear put spread?
- AXON ATM IV is at 64.09% with IV rank near 56.05%, 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.