How are COCO 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 COCO bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.40%), the computed maximum profit is $312.50 per contract and the computed maximum loss is -$187.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a COCO bear put spread?

The breakeven for the COCO bear put spread priced on this page is roughly $63.13 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 COCO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

COCO ATM IV is at 42.40% with IV rank near 16.85%, 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.

COCO Bear Put Spread Strategy

COCO (The Vita Coco Company, Inc.), in the Consumer Defensive sector, (Beverages - Non-Alcoholic industry), listed on NASDAQ.

The Vita Coco Company, Inc. is a global beverage enterprise, founded in New York in 2004, primarily engaged in the development, marketing, and distribution of its flagship Vita Coco-branded coconut water. Its extensive market presence spans the United States, Canada, Europe, the Middle East, and the Asia Pacific region. Beyond its core product, the company's diverse portfolio encompasses coconut oil and milk, Hydration Drink Mix (a powdered flavored coconut water), sparkling water, the plant-based energy drink Runa, purified water under the Ever & Ever label, and PWR LIFT, a protein-enhanced fitness beverage. The firm leverages a broad distribution network, reaching consumers through club stores, grocery chains, pharmacies, mass merchandisers, convenience stores, online channels, and foodservice providers. Furthermore, Vita Coco acts as a wholesale supplier of coconut water and coconut oil categories to other retailers. Originally known as All Market Inc., the company officially adopted The Vita Coco Company, Inc. as its name in September 2021.

COCO (The Vita Coco Company, Inc.) trades in the Consumer Defensive sector, specifically Beverages - Non-Alcoholic, with a market capitalization of approximately $3.74B, a trailing P/E of 34.07, a beta of 0.77 versus the broader market, a 52-week range of 33.12-85.83, average daily share volume of 1.2M, a public-listing history dating back to 2021, approximately 336 full-time employees. These structural characteristics shape how COCO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.77 places COCO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a bear put spread on COCO?

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.

COCO snapshot

As of August 14, 2026, spot at $65.38, ATM IV 42.40%, IV rank 16.85%, expected move 12.16%. The bear put spread on COCO 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 63-day expiry.

Why this bear put spread structure on COCO specifically: COCO IV at 42.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a COCO bear put spread, with a market-implied 1-standard-deviation move of approximately 12.16% (roughly $7.95 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COCO expiries trade a higher absolute premium for lower per-day decay. Position sizing on COCO should anchor to the underlying notional of $65.38 per share and to the trader's directional view on COCO stock.

COCO bear put spread setup

The COCO 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 COCO at $65.38 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 COCO chain at a 63-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 COCO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$65.00	$4.30
Sell 1	Put	$60.00	$2.43

COCO bear put spread risk and reward

Net Premium / Debit: -$187.50
Max Profit (per contract): $312.50
Max Loss (per contract): -$187.50
Breakeven(s): $63.13
Risk / Reward Ratio: 1.667

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.

COCO bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on COCO. 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%	+$312.50
$14.46	-77.9%	+$312.50
$28.92	-55.8%	+$312.50
$43.37	-33.7%	+$312.50
$57.83	-11.5%	+$312.50
$72.28	+10.6%	-$187.50
$86.74	+32.7%	-$187.50
$101.19	+54.8%	-$187.50
$115.65	+76.9%	-$187.50
$130.10	+99.0%	-$187.50

When traders use bear put spread on COCO

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

COCO thesis for this bear put spread

The market-implied 1-standard-deviation range for COCO extends from approximately $57.43 on the downside to $73.33 on the upside. A COCO bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on COCO, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current COCO IV rank near 16.85% 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 COCO at 42.40%. As a Consumer Defensive name, COCO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COCO-specific events.

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

Frequently asked questions

What is a bear put spread on COCO?: A bear put spread on COCO is the bear put spread strategy applied to COCO (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 COCO stock at $65.38 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed COCO chain strike and the premiums come straight from that session's bid/ask midpoint.
How are COCO 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 COCO bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.40%), the computed maximum profit is $312.50 per contract and the computed maximum loss is -$187.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a COCO bear put spread?: The breakeven for the COCO bear put spread priced on this page is roughly $63.13 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 COCO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.16%; 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 COCO?: Bear put spreads on COCO reduce the cost of a bearish COCO 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 COCO implied volatility affect this bear put spread?: COCO ATM IV is at 42.40% with IV rank near 16.85%, 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.