How are BURL 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 BURL bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 48.67%), the computed maximum profit is $725.00 per contract and the computed maximum loss is -$775.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BURL bear put spread?

The breakeven for the BURL bear put spread priced on this page is roughly $287.25 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 BURL market-implied 1-standard-deviation expected move is approximately 13.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

BURL ATM IV is at 48.67% with IV rank near 76.41%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

BURL Bear Put Spread Strategy

BURL (Burlington Stores, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.

Burlington Stores, Inc. operates as a retailer of branded apparel products in the United States. The company provides fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. As of January 29, 2022, it operated 837 stores under the Burlington Stores name, 2 stores under the Cohoes Fashions name, and 1 store under the MJM Designer Shoes name in 45 states and Puerto Rico. Burlington Stores, Inc. was founded in 1972 and is headquartered in Burlington, New Jersey.

BURL (Burlington Stores, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $17.99B, a trailing P/E of 30.09, a beta of 1.48 versus the broader market, a 52-week range of 218.52-351.85, average daily share volume of 742K, a public-listing history dating back to 2013, approximately 17K full-time employees. These structural characteristics shape how BURL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.48 indicates BURL 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 BURL?

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 BURL snapshot

As of May 15, 2026, spot at $292.60, ATM IV 48.67%, IV rank 76.41%, expected move 13.95%. The bear put spread on BURL 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 28-day expiry.

Why this bear put spread structure on BURL specifically: BURL IV at 48.67% is rich versus its 1-year range, which makes a premium-buying BURL bear put spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 13.95% (roughly $40.83 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 BURL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BURL should anchor to the underlying notional of $292.60 per share and to the trader's directional view on BURL stock.

BURL bear put spread setup

The BURL 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 BURL near $292.60, the first option leg uses a $295.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BURL 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 BURL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$295.00	$17.45
Sell 1	Put	$280.00	$9.70

BURL bear put spread risk and reward

Net Premium / Debit: -$775.00
Max Profit (per contract): $725.00
Max Loss (per contract): -$775.00
Breakeven(s): $287.25
Risk / Reward Ratio: 0.935

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.

BURL bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on BURL. 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%	+$725.00
$64.70	-77.9%	+$725.00
$129.40	-55.8%	+$725.00
$194.09	-33.7%	+$725.00
$258.79	-11.6%	+$725.00
$323.48	+10.6%	-$775.00
$388.18	+32.7%	-$775.00
$452.87	+54.8%	-$775.00
$517.56	+76.9%	-$775.00
$582.26	+99.0%	-$775.00

When traders use bear put spread on BURL

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

BURL thesis for this bear put spread

The market-implied 1-standard-deviation range for BURL extends from approximately $251.77 on the downside to $333.43 on the upside. A BURL bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on BURL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current BURL IV rank near 76.41% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on BURL at 48.67%. As a Consumer Cyclical name, BURL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BURL-specific events.

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

Frequently asked questions

What is a bear put spread on BURL?: A bear put spread on BURL is the bear put spread strategy applied to BURL (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 BURL stock trading near $292.60, the strikes shown on this page are snapped to the nearest listed BURL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BURL 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 BURL bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 48.67%), the computed maximum profit is $725.00 per contract and the computed maximum loss is -$775.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BURL bear put spread?: The breakeven for the BURL bear put spread priced on this page is roughly $287.25 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 BURL market-implied 1-standard-deviation expected move is approximately 13.95%; 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 BURL?: Bear put spreads on BURL reduce the cost of a bearish BURL 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 BURL implied volatility affect this bear put spread?: BURL ATM IV is at 48.67% with IV rank near 76.41%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.