ENSG Bear Put Spread Strategy
ENSG (The Ensign Group, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.
The Ensign Group, Inc. operates as a healthcare provider, primarily concentrating on post-acute care services, alongside other supporting business ventures. The company's activities are organized into two main divisions: Skilled Services and Real Estate. Within its Skilled Services segment, Ensign provides extensive short-term and long-term nursing care tailored for patients recovering from extended illnesses, managing chronic health conditions, or requiring elder care. This division also encompasses a variety of rehabilitative therapies, such as physical, occupational, and speech therapy, among other specialized healthcare provisions. Beyond direct medical care, the company furnishes essential amenities like lodging, customized dietary programs, and opportunities for social engagement, recreation, and entertainment. Ensign additionally manages senior living facilities and delivers convenient mobile diagnostic services.
ENSG (The Ensign Group, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $9.53B, a trailing P/E of 25.92, a beta of 0.68 versus the broader market, a 52-week range of 134.79-218, average daily share volume of 765K, a public-listing history dating back to 2007, approximately 39K full-time employees. These structural characteristics shape how ENSG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates ENSG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ENSG 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 ENSG?
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 ENSG snapshot
As of June 30, 2026, spot at $160.33, ATM IV 44.30%, IV rank 73.65%, expected move 12.70%. The bear put spread on ENSG 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 17-day expiry.
Why this bear put spread structure on ENSG specifically: ENSG IV at 44.30% is rich versus its 1-year range, which makes a premium-buying ENSG bear put spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 12.70% (roughly $20.36 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ENSG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ENSG should anchor to the underlying notional of $160.33 per share and to the trader's directional view on ENSG stock.
ENSG bear put spread setup
The ENSG 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 ENSG near $160.33, the first option leg uses a $160.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ENSG chain at a 17-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 ENSG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $160.00 | $5.70 |
| Sell 1 | Put | $150.00 | $3.35 |
ENSG bear put spread risk and reward
- Net Premium / Debit
- -$235.00
- Max Profit (per contract)
- $765.00
- Max Loss (per contract)
- -$235.00
- Breakeven(s)
- $157.65
- Risk / Reward Ratio
- 3.255
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.
ENSG bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on ENSG. 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% | +$765.00 |
| $35.46 | -77.9% | +$765.00 |
| $70.91 | -55.8% | +$765.00 |
| $106.36 | -33.7% | +$765.00 |
| $141.80 | -11.6% | +$765.00 |
| $177.25 | +10.6% | -$235.00 |
| $212.70 | +32.7% | -$235.00 |
| $248.15 | +54.8% | -$235.00 |
| $283.60 | +76.9% | -$235.00 |
| $319.05 | +99.0% | -$235.00 |
When traders use bear put spread on ENSG
Bear put spreads on ENSG reduce the cost of a bearish ENSG stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
ENSG thesis for this bear put spread
The market-implied 1-standard-deviation range for ENSG extends from approximately $139.97 on the downside to $180.69 on the upside. A ENSG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on ENSG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current ENSG IV rank near 73.65% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on ENSG at 44.30%. As a Healthcare name, ENSG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ENSG-specific events.
ENSG 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. ENSG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ENSG alongside the broader basket even when ENSG-specific fundamentals are unchanged. Long-premium structures like a bear put spread on ENSG 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 ENSG chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on ENSG?
- A bear put spread on ENSG is the bear put spread strategy applied to ENSG (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 ENSG stock trading near $160.33, the strikes shown on this page are snapped to the nearest listed ENSG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ENSG 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 ENSG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 44.30%), the computed maximum profit is $765.00 per contract and the computed maximum loss is -$235.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ENSG bear put spread?
- The breakeven for the ENSG bear put spread priced on this page is roughly $157.65 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 ENSG market-implied 1-standard-deviation expected move is approximately 12.70%; 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 ENSG?
- Bear put spreads on ENSG reduce the cost of a bearish ENSG 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 ENSG implied volatility affect this bear put spread?
- ENSG ATM IV is at 44.30% with IV rank near 73.65%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.