How are DCO 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 DCO bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 50.80%), the computed maximum profit is $830.00 per contract and the computed maximum loss is -$670.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DCO bear put spread?

The breakeven for the DCO bear put spread priced on this page is roughly $203.30 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 DCO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

DCO ATM IV is at 50.80% with IV rank near 46.18%, 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.

DCO Bear Put Spread Strategy

DCO (Ducommun Incorporated), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

Ducommun Incorporated, an established company founded in 1849 and based in Santa Ana, California, specializes in delivering advanced engineering and manufacturing solutions. Primarily, it caters to critical sectors within the United States, such as the aerospace and defense, industrial, and medical fields. The company's operations are divided into two principal segments: Electronic Systems and Structural Systems. The Electronic Systems division produces a wide array of sophisticated components. These offerings encompass various connectivity and wiring solutions like cable assemblies, wire harnesses, and interconnect systems, as well as printed circuit board assemblies and more complex electronic, electromechanical, and mechanical sub-assemblies. This segment also provides lightning diversion systems, radar housings, aircraft electronics racks, shipboard communication and control enclosures, surge suppressors, and conformal shields.

DCO (Ducommun Incorporated) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $3.12B, a beta of 1.05 versus the broader market, a 52-week range of 84.76-210.39, average daily share volume of 262K, a public-listing history dating back to 1973, approximately 2K full-time employees. These structural characteristics shape how DCO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.05 places DCO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DCO 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 DCO?

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.

DCO snapshot

As of August 14, 2026, spot at $206.74, ATM IV 50.80%, IV rank 46.18%, expected move 14.56%. The bear put spread on DCO 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 35-day expiry.

Why this bear put spread structure on DCO specifically: DCO IV at 50.80% 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 14.56% (roughly $30.11 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DCO expiries trade a higher absolute premium for lower per-day decay. Position sizing on DCO should anchor to the underlying notional of $206.74 per share and to the trader's directional view on DCO stock.

DCO bear put spread setup

The DCO 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 DCO at $206.74 on that close, the first option leg uses a $210.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DCO chain at a 35-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 DCO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$210.00	$14.75
Sell 1	Put	$195.00	$8.05

DCO bear put spread risk and reward

Net Premium / Debit: -$670.00
Max Profit (per contract): $830.00
Max Loss (per contract): -$670.00
Breakeven(s): $203.30
Risk / Reward Ratio: 1.239

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.

DCO bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on DCO. 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%	+$830.00
$45.72	-77.9%	+$830.00
$91.43	-55.8%	+$830.00
$137.14	-33.7%	+$830.00
$182.85	-11.6%	+$830.00
$228.56	+10.6%	-$670.00
$274.27	+32.7%	-$670.00
$319.98	+54.8%	-$670.00
$365.69	+76.9%	-$670.00
$411.40	+99.0%	-$670.00

When traders use bear put spread on DCO

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

DCO thesis for this bear put spread

The market-implied 1-standard-deviation range for DCO extends from approximately $176.63 on the downside to $236.85 on the upside. A DCO bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on DCO, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current DCO IV rank near 46.18% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on DCO should anchor more to the directional view and the expected-move geometry. As a Industrials name, DCO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DCO-specific events.

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

Frequently asked questions

What is a bear put spread on DCO?: A bear put spread on DCO is the bear put spread strategy applied to DCO (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 DCO stock at $206.74 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DCO chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DCO 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 DCO bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 50.80%), the computed maximum profit is $830.00 per contract and the computed maximum loss is -$670.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DCO bear put spread?: The breakeven for the DCO bear put spread priced on this page is roughly $203.30 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 DCO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.56%; 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 DCO?: Bear put spreads on DCO reduce the cost of a bearish DCO 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 DCO implied volatility affect this bear put spread?: DCO ATM IV is at 50.80% with IV rank near 46.18%, 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.