How are BTG 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 BTG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 52.80%), the computed maximum profit is $33.50 per contract and the computed maximum loss is -$16.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BTG bear put spread?

The breakeven for the BTG bear put spread priced on this page is roughly $4.84 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 BTG market-implied 1-standard-deviation expected move is approximately 15.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

BTG ATM IV is at 52.80% with IV rank near 21.86%, 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.

BTG Bear Put Spread Strategy

BTG (B2Gold Corp.), in the Basic Materials sector, (Gold industry), listed on AMEX.

B2Gold Corp. operates as a gold producer with three operating mines in Mali, the Philippines, and Namibia. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 25% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp. In addition, it has a portfolio of other evaluation and exploration assets in Mali, Uzbekistan, and Finland. The company was incorporated in 2006 and is headquartered in Vancouver, Canada.

BTG (B2Gold Corp.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $7.20B, a trailing P/E of 13.25, a beta of 1.29 versus the broader market, a 52-week range of 2.87-6.29, average daily share volume of 33.1M, a public-listing history dating back to 2008, approximately 2K full-time employees. These structural characteristics shape how BTG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.29 places BTG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BTG 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 BTG?

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 BTG snapshot

As of May 15, 2026, spot at $4.91, ATM IV 52.80%, IV rank 21.86%, expected move 15.14%. The bear put spread on BTG 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 7-day expiry.

Why this bear put spread structure on BTG specifically: BTG IV at 52.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a BTG bear put spread, with a market-implied 1-standard-deviation move of approximately 15.14% (roughly $0.74 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BTG expiries trade a higher absolute premium for lower per-day decay. Position sizing on BTG should anchor to the underlying notional of $4.91 per share and to the trader's directional view on BTG stock.

BTG bear put spread setup

The BTG 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 BTG near $4.91, the first option leg uses a $5.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BTG chain at a 7-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 BTG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$5.00	$0.18
Sell 1	Put	$4.50	$0.01

BTG bear put spread risk and reward

Net Premium / Debit: -$16.50
Max Profit (per contract): $33.50
Max Loss (per contract): -$16.50
Breakeven(s): $4.84
Risk / Reward Ratio: 2.030

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.

BTG bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on BTG. 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	-99.8%	+$33.50
$1.09	-77.7%	+$33.50
$2.18	-55.6%	+$33.50
$3.26	-33.5%	+$33.50
$4.35	-11.4%	+$33.50
$5.43	+10.6%	-$16.50
$6.52	+32.7%	-$16.50
$7.60	+54.8%	-$16.50
$8.69	+76.9%	-$16.50
$9.77	+99.0%	-$16.50

When traders use bear put spread on BTG

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

BTG thesis for this bear put spread

The market-implied 1-standard-deviation range for BTG extends from approximately $4.17 on the downside to $5.65 on the upside. A BTG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on BTG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current BTG IV rank near 21.86% 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 BTG at 52.80%. As a Basic Materials name, BTG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BTG-specific events.

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

Frequently asked questions

What is a bear put spread on BTG?: A bear put spread on BTG is the bear put spread strategy applied to BTG (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 BTG stock trading near $4.91, the strikes shown on this page are snapped to the nearest listed BTG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BTG 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 BTG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 52.80%), the computed maximum profit is $33.50 per contract and the computed maximum loss is -$16.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BTG bear put spread?: The breakeven for the BTG bear put spread priced on this page is roughly $4.84 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 BTG market-implied 1-standard-deviation expected move is approximately 15.14%; 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 BTG?: Bear put spreads on BTG reduce the cost of a bearish BTG 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 BTG implied volatility affect this bear put spread?: BTG ATM IV is at 52.80% with IV rank near 21.86%, 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.