How are DAVE 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 DAVE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 62.50%), the computed maximum profit is $605.00 per contract and the computed maximum loss is -$395.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DAVE bear put spread?

The breakeven for the DAVE bear put spread priced on this page is roughly $231.05 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 DAVE market-implied 1-standard-deviation expected move is approximately 17.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

DAVE ATM IV is at 62.50% with IV rank near 12.22%, 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.

DAVE Bear Put Spread Strategy

DAVE (Dave Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

Dave Inc. provides a suite of financial products and services through its financial service online platform. The company offers Insights, a personal financial management tool to manage income and expenses between paychecks for members; ExtraCash, a free overdraft and short-term credit alternative, which allows members to advance funds to their account and avoid a fee; and Side Hustle, a job application portal. It also provides Dave Banking, a digital checking and demand deposit account. The company was founded in 2015 and is based in West Hollywood, California.

DAVE (Dave Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.23B, a trailing P/E of 14.33, a beta of 3.94 versus the broader market, a 52-week range of 152.21-287.69, average daily share volume of 590K, a public-listing history dating back to 2021, approximately 274 full-time employees. These structural characteristics shape how DAVE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.94 indicates DAVE 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 DAVE?

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 DAVE snapshot

As of May 15, 2026, spot at $234.96, ATM IV 62.50%, IV rank 12.22%, expected move 17.92%. The bear put spread on DAVE 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 DAVE specifically: DAVE IV at 62.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a DAVE bear put spread, with a market-implied 1-standard-deviation move of approximately 17.92% (roughly $42.10 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 DAVE expiries trade a higher absolute premium for lower per-day decay. Position sizing on DAVE should anchor to the underlying notional of $234.96 per share and to the trader's directional view on DAVE stock.

DAVE bear put spread setup

The DAVE 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 DAVE near $234.96, the first option leg uses a $235.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DAVE 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 DAVE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$235.00	$15.35
Sell 1	Put	$225.00	$11.40

DAVE bear put spread risk and reward

Net Premium / Debit: -$395.00
Max Profit (per contract): $605.00
Max Loss (per contract): -$395.00
Breakeven(s): $231.05
Risk / Reward Ratio: 1.532

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.

DAVE bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on DAVE. 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%	+$605.00
$51.96	-77.9%	+$605.00
$103.91	-55.8%	+$605.00
$155.86	-33.7%	+$605.00
$207.81	-11.6%	+$605.00
$259.76	+10.6%	-$395.00
$311.71	+32.7%	-$395.00
$363.66	+54.8%	-$395.00
$415.61	+76.9%	-$395.00
$467.56	+99.0%	-$395.00

When traders use bear put spread on DAVE

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

DAVE thesis for this bear put spread

The market-implied 1-standard-deviation range for DAVE extends from approximately $192.86 on the downside to $277.06 on the upside. A DAVE bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on DAVE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current DAVE IV rank near 12.22% 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 DAVE at 62.50%. As a Technology name, DAVE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DAVE-specific events.

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

Frequently asked questions

What is a bear put spread on DAVE?: A bear put spread on DAVE is the bear put spread strategy applied to DAVE (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 DAVE stock trading near $234.96, the strikes shown on this page are snapped to the nearest listed DAVE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DAVE 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 DAVE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 62.50%), the computed maximum profit is $605.00 per contract and the computed maximum loss is -$395.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DAVE bear put spread?: The breakeven for the DAVE bear put spread priced on this page is roughly $231.05 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 DAVE market-implied 1-standard-deviation expected move is approximately 17.92%; 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 DAVE?: Bear put spreads on DAVE reduce the cost of a bearish DAVE 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 DAVE implied volatility affect this bear put spread?: DAVE ATM IV is at 62.50% with IV rank near 12.22%, 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.