How are BKR 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 BKR bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.00%), the computed maximum profit is $322.50 per contract and the computed maximum loss is -$177.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BKR bear put spread?

The breakeven for the BKR bear put spread priced on this page is roughly $63.23 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 BKR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

BKR ATM IV is at 31.00% with IV rank near 13.35%, 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.

BKR Bear Put Spread Strategy

BKR (Baker Hughes Company), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.

Baker Hughes Co. is a holding company, which engages in the provision of oilfield products, services, and digital solutions. It operates through the Oilfield Services and Equipment (OFSE) and industrial and Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides services for onshore and offshore oilfield operations. The IET segment combines expertise, technologies, and services for industrial and energy customers including on and off-shore, LNG, pipeline and gas storage, refining, petrochemical, distributed gas, flow and process control, and industrial segments such as nuclear, aviation, automotive, marine, food and beverage, mining, cement and utilities. The company was founded in April 1987 and is headquartered in Houston, TX.

BKR (Baker Hughes Company) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $63.81B, a trailing P/E of 20.57, a beta of 0.96 versus the broader market, a 52-week range of 41.96-70.41, average daily share volume of 8.6M, a public-listing history dating back to 1987, approximately 54K full-time employees. These structural characteristics shape how BKR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.96 places BKR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BKR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a bear put spread on BKR?

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.

BKR snapshot

As of August 14, 2026, spot at $64.68, ATM IV 31.00%, IV rank 13.35%, expected move 8.89%. The bear put spread on BKR 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 35-day expiry.

Why this bear put spread structure on BKR specifically: BKR IV at 31.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a BKR bear put spread, with a market-implied 1-standard-deviation move of approximately 8.89% (roughly $5.75 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BKR expiries trade a higher absolute premium for lower per-day decay. Position sizing on BKR should anchor to the underlying notional of $64.68 per share and to the trader's directional view on BKR stock.

BKR bear put spread setup

The BKR 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 BKR at $64.68 on that close, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BKR chain at a 35-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 BKR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$65.00	$2.55
Sell 1	Put	$60.00	$0.78

BKR bear put spread risk and reward

Net Premium / Debit: -$177.50
Max Profit (per contract): $322.50
Max Loss (per contract): -$177.50
Breakeven(s): $63.23
Risk / Reward Ratio: 1.817

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.

BKR bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on BKR. 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%	+$322.50
$14.31	-77.9%	+$322.50
$28.61	-55.8%	+$322.50
$42.91	-33.7%	+$322.50
$57.21	-11.5%	+$322.50
$71.51	+10.6%	-$177.50
$85.81	+32.7%	-$177.50
$100.11	+54.8%	-$177.50
$114.41	+76.9%	-$177.50
$128.71	+99.0%	-$177.50

When traders use bear put spread on BKR

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

BKR thesis for this bear put spread

The market-implied 1-standard-deviation range for BKR extends from approximately $58.93 on the downside to $70.43 on the upside. A BKR bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on BKR, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current BKR IV rank near 13.35% 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 BKR at 31.00%. As a Energy name, BKR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BKR-specific events.

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

Frequently asked questions

What is a bear put spread on BKR?: A bear put spread on BKR is the bear put spread strategy applied to BKR (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 BKR stock at $64.68 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BKR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BKR 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 BKR bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.00%), the computed maximum profit is $322.50 per contract and the computed maximum loss is -$177.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BKR bear put spread?: The breakeven for the BKR bear put spread priced on this page is roughly $63.23 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 BKR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.89%; 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 BKR?: Bear put spreads on BKR reduce the cost of a bearish BKR 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 BKR implied volatility affect this bear put spread?: BKR ATM IV is at 31.00% with IV rank near 13.35%, 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.