How are DFTX 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 DFTX bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 83.30%), the computed maximum profit is $95.00 per contract and the computed maximum loss is -$105.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DFTX bear put spread?

The breakeven for the DFTX bear put spread priced on this page is roughly $40.95 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 DFTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 23.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

DFTX ATM IV is at 83.30% with IV rank near 11.51%, 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.

DFTX Bear Put Spread Strategy

DFTX (Definium Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Definium Therapeutics, Inc. operates as a clinical-stage biopharmaceutical firm dedicated to developing innovative therapeutic solutions for various brain health and neurological disorders. Its pipeline features key experimental drug candidates like MM120, which is currently undergoing Phase 3 clinical trials for generalized anxiety disorder (GAD) and attention deficit hyperactivity disorder (ADHD). Another significant compound, MM402 – an R-enantiomer of 3,4-methylenedioxymethamphetamine – is in Phase 1 trials, targeting the fundamental symptoms of autism spectrum disorder. The company maintains its headquarters in New York, New York.

DFTX (Definium Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $5.68B, a beta of 2.24 versus the broader market, a 52-week range of 12.882-49.2, average daily share volume of 2.6M, a public-listing history dating back to 2016, approximately 106 full-time employees. These structural characteristics shape how DFTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.24 indicates DFTX 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 DFTX?

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.

DFTX snapshot

As of August 14, 2026, spot at $42.37, ATM IV 83.30%, IV rank 11.51%, expected move 23.88%. The bear put spread on DFTX 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 DFTX specifically: DFTX IV at 83.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a DFTX bear put spread, with a market-implied 1-standard-deviation move of approximately 23.88% (roughly $10.12 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 DFTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on DFTX should anchor to the underlying notional of $42.37 per share and to the trader's directional view on DFTX stock.

DFTX bear put spread setup

The DFTX 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 DFTX at $42.37 on that close, the first option leg uses a $42.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DFTX 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 DFTX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$42.00	$3.85
Sell 1	Put	$40.00	$2.80

DFTX bear put spread risk and reward

Net Premium / Debit: -$105.00
Max Profit (per contract): $95.00
Max Loss (per contract): -$105.00
Breakeven(s): $40.95
Risk / Reward Ratio: 0.905

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.

DFTX bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on DFTX. 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%	+$95.00
$9.38	-77.9%	+$95.00
$18.74	-55.8%	+$95.00
$28.11	-33.7%	+$95.00
$37.48	-11.5%	+$95.00
$46.85	+10.6%	-$105.00
$56.21	+32.7%	-$105.00
$65.58	+54.8%	-$105.00
$74.95	+76.9%	-$105.00
$84.31	+99.0%	-$105.00

When traders use bear put spread on DFTX

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

DFTX thesis for this bear put spread

The market-implied 1-standard-deviation range for DFTX extends from approximately $32.25 on the downside to $52.49 on the upside. A DFTX bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on DFTX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current DFTX IV rank near 11.51% 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 DFTX at 83.30%. As a Healthcare name, DFTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DFTX-specific events.

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

Frequently asked questions

What is a bear put spread on DFTX?: A bear put spread on DFTX is the bear put spread strategy applied to DFTX (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 DFTX stock at $42.37 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DFTX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DFTX 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 DFTX bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 83.30%), the computed maximum profit is $95.00 per contract and the computed maximum loss is -$105.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DFTX bear put spread?: The breakeven for the DFTX bear put spread priced on this page is roughly $40.95 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 DFTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 23.88%; 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 DFTX?: Bear put spreads on DFTX reduce the cost of a bearish DFTX 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 DFTX implied volatility affect this bear put spread?: DFTX ATM IV is at 83.30% with IV rank near 11.51%, 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.