CI Bear Put Spread Strategy
CI (Cigna Corporation), in the Healthcare sector, (Medical - Healthcare Plans industry), listed on NYSE.
Cigna Group, established in 1792 and headquartered in Bloomfield, Connecticut, provides insurance products and related services across the United States. The company operates through two primary segments. Its Evernorth division offers a comprehensive array of coordinated and specialized health solutions, including pharmacy services, benefits administration, care management and delivery, and advanced intelligence solutions. These offerings cater to a diverse clientele, such as health plans, employers, government entities, and healthcare providers. Meanwhile, the Cigna Healthcare segment delivers an extensive portfolio of products and services, encompassing medical, pharmaceutical, behavioral health, dental, vision, and health advocacy programs for both insured and self-insured customers. This segment also provides Medicare Advantage, Medicare Supplement, and Medicare Part D plans specifically for seniors, in addition to individual health insurance options available on and off public exchanges.
CI (Cigna Corporation) trades in the Healthcare sector, specifically Medical - Healthcare Plans, with a market capitalization of approximately $74.81B, a trailing P/E of 11.81, a beta of 0.30 versus the broader market, a 52-week range of 239.51-338.89, average daily share volume of 1.6M, a public-listing history dating back to 1982, approximately 71K full-time employees. These structural characteristics shape how CI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.30 indicates CI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.81 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CI 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 CI?
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 CI snapshot
As of June 30, 2026, spot at $276.42, ATM IV 34.28%, IV rank 58.67%, expected move 9.83%. The bear put spread on CI 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 31-day expiry.
Why this bear put spread structure on CI specifically: CI IV at 34.28% 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 9.83% (roughly $27.17 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CI should anchor to the underlying notional of $276.42 per share and to the trader's directional view on CI stock.
CI bear put spread setup
The CI 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 CI near $276.42, the first option leg uses a $275.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CI chain at a 31-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 CI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $275.00 | $9.85 |
| Sell 1 | Put | $265.00 | $6.20 |
CI bear put spread risk and reward
- Net Premium / Debit
- -$365.00
- Max Profit (per contract)
- $635.00
- Max Loss (per contract)
- -$365.00
- Breakeven(s)
- $271.35
- Risk / Reward Ratio
- 1.740
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.
CI bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on CI. 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% | +$635.00 |
| $61.13 | -77.9% | +$635.00 |
| $122.24 | -55.8% | +$635.00 |
| $183.36 | -33.7% | +$635.00 |
| $244.48 | -11.6% | +$635.00 |
| $305.59 | +10.6% | -$365.00 |
| $366.71 | +32.7% | -$365.00 |
| $427.83 | +54.8% | -$365.00 |
| $488.95 | +76.9% | -$365.00 |
| $550.06 | +99.0% | -$365.00 |
When traders use bear put spread on CI
Bear put spreads on CI reduce the cost of a bearish CI stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
CI thesis for this bear put spread
The market-implied 1-standard-deviation range for CI extends from approximately $249.25 on the downside to $303.59 on the upside. A CI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CI IV rank near 58.67% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on CI should anchor more to the directional view and the expected-move geometry. As a Healthcare name, CI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CI-specific events.
CI 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. CI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CI alongside the broader basket even when CI-specific fundamentals are unchanged. Long-premium structures like a bear put spread on CI 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 CI chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on CI?
- A bear put spread on CI is the bear put spread strategy applied to CI (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 CI stock trading near $276.42, the strikes shown on this page are snapped to the nearest listed CI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CI 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 CI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 34.28%), the computed maximum profit is $635.00 per contract and the computed maximum loss is -$365.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CI bear put spread?
- The breakeven for the CI bear put spread priced on this page is roughly $271.35 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 CI market-implied 1-standard-deviation expected move is approximately 9.83%; 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 CI?
- Bear put spreads on CI reduce the cost of a bearish CI 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 CI implied volatility affect this bear put spread?
- CI ATM IV is at 34.28% with IV rank near 58.67%, 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.