BDTX Bear Put Spread Strategy
BDTX (Black Diamond Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Black Diamond Therapeutics, Inc., a biotechnology company, discover, develops, and commercializes medicines for patient with genetically defined tumors. It develops BDTX-189, an irreversible small molecule inhibitor that is designed to targets oncogenic proteins defined by the non-canonical epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 2 driver mutations. The company is also developing BDTX-1535, a brain-penetrant inhibitor of EGFR mutations, including canonical, intrinsic resistance, and acquired resistance mutations; and BDTX-4933, a brain-penetrant inhibitor of oncogenic BRAF class I, II and III alterations. It has a strategic partnership with OpenEye Scientific Software, Inc. The company was formerly known as ASET Therapeutics, Inc. and changed its name to Black Diamond Therapeutics, Inc. in January 2018. Black Diamond Therapeutics, Inc. was incorporated in 2014 and is headquartered in Cambridge, Massachusetts.
BDTX (Black Diamond Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $163.9M, a beta of 3.35 versus the broader market, a 52-week range of 1.77-4.94, average daily share volume of 748K, a public-listing history dating back to 2020, approximately 24 full-time employees. These structural characteristics shape how BDTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.35 indicates BDTX 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 BDTX?
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 BDTX snapshot
As of May 15, 2026, spot at $2.75, ATM IV 171.70%, IV rank 34.68%, expected move 49.22%. The bear put spread on BDTX 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 34-day expiry.
Why this bear put spread structure on BDTX specifically: BDTX IV at 171.70% 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 49.22% (roughly $1.35 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BDTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on BDTX should anchor to the underlying notional of $2.75 per share and to the trader's directional view on BDTX stock.
BDTX bear put spread setup
The BDTX 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 BDTX near $2.75, the first option leg uses a $2.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BDTX chain at a 34-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 BDTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $2.75 | N/A |
| Sell 1 | Put | $2.61 | N/A |
BDTX 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.
BDTX bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on BDTX. 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 BDTX
Bear put spreads on BDTX reduce the cost of a bearish BDTX stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
BDTX thesis for this bear put spread
The market-implied 1-standard-deviation range for BDTX extends from approximately $1.40 on the downside to $4.10 on the upside. A BDTX bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on BDTX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current BDTX IV rank near 34.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on BDTX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, BDTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BDTX-specific events.
BDTX 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. BDTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BDTX alongside the broader basket even when BDTX-specific fundamentals are unchanged. Long-premium structures like a bear put spread on BDTX 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 BDTX chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on BDTX?
- A bear put spread on BDTX is the bear put spread strategy applied to BDTX (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 BDTX stock trading near $2.75, the strikes shown on this page are snapped to the nearest listed BDTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BDTX 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 BDTX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 171.70%), 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 BDTX bear put spread?
- The breakeven for the BDTX 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 BDTX market-implied 1-standard-deviation expected move is approximately 49.22%; 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 BDTX?
- Bear put spreads on BDTX reduce the cost of a bearish BDTX 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 BDTX implied volatility affect this bear put spread?
- BDTX ATM IV is at 171.70% with IV rank near 34.68%, 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.