How are EWTX 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 EWTX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 86.30%), the computed maximum profit is $117.50 per contract and the computed maximum loss is -$82.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EWTX bear put spread?

The breakeven for the EWTX bear put spread priced on this page is roughly $32.18 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 EWTX market-implied 1-standard-deviation expected move is approximately 24.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

EWTX ATM IV is at 86.30% with IV rank near 17.50%, 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.

EWTX Bear Put Spread Strategy

EWTX (Edgewise Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Edgewise Therapeutics, Inc., a biopharmaceutical company, develops small molecule therapies for musculoskeletal diseases. The Company's lead product candidate, EDG-5506, is an orally administered small molecule designed to address the root cause of dystrophinopathies including Duchenne muscular dystrophy and Becker muscular dystrophy which has completed Phase 1 clinical trial. It develops a pipeline of precision medicine product candidates that target key muscle proteins and modulators to address genetically defined muscle disorders. Edgewise Therapeutics, Inc. was incorporated in 2017 and is headquartered in Boulder, Colorado.

EWTX (Edgewise Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.63B, a beta of 0.25 versus the broader market, a 52-week range of 12.15-39.96, average daily share volume of 1.0M, a public-listing history dating back to 2021, approximately 117 full-time employees. These structural characteristics shape how EWTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.25 indicates EWTX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a bear put spread on EWTX?

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 EWTX snapshot

As of May 15, 2026, spot at $33.08, ATM IV 86.30%, IV rank 17.50%, expected move 24.74%. The bear put spread on EWTX 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 34-day expiry.

Why this bear put spread structure on EWTX specifically: EWTX IV at 86.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a EWTX bear put spread, with a market-implied 1-standard-deviation move of approximately 24.74% (roughly $8.18 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EWTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on EWTX should anchor to the underlying notional of $33.08 per share and to the trader's directional view on EWTX stock.

EWTX bear put spread setup

The EWTX 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 EWTX near $33.08, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EWTX chain at a 34-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 EWTX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$33.00	$3.58
Sell 1	Put	$31.00	$2.75

EWTX bear put spread risk and reward

Net Premium / Debit: -$82.50
Max Profit (per contract): $117.50
Max Loss (per contract): -$82.50
Breakeven(s): $32.18
Risk / Reward Ratio: 1.424

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.

EWTX bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on EWTX. 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%	+$117.50
$7.32	-77.9%	+$117.50
$14.64	-55.8%	+$117.50
$21.95	-33.6%	+$117.50
$29.26	-11.5%	+$117.50
$36.58	+10.6%	-$82.50
$43.89	+32.7%	-$82.50
$51.20	+54.8%	-$82.50
$58.51	+76.9%	-$82.50
$65.83	+99.0%	-$82.50

When traders use bear put spread on EWTX

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

EWTX thesis for this bear put spread

The market-implied 1-standard-deviation range for EWTX extends from approximately $24.90 on the downside to $41.26 on the upside. A EWTX bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on EWTX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current EWTX IV rank near 17.50% 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 EWTX at 86.30%. As a Healthcare name, EWTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EWTX-specific events.

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

Frequently asked questions

What is a bear put spread on EWTX?: A bear put spread on EWTX is the bear put spread strategy applied to EWTX (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 EWTX stock trading near $33.08, the strikes shown on this page are snapped to the nearest listed EWTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are EWTX 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 EWTX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 86.30%), the computed maximum profit is $117.50 per contract and the computed maximum loss is -$82.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EWTX bear put spread?: The breakeven for the EWTX bear put spread priced on this page is roughly $32.18 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 EWTX market-implied 1-standard-deviation expected move is approximately 24.74%; 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 EWTX?: Bear put spreads on EWTX reduce the cost of a bearish EWTX 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 EWTX implied volatility affect this bear put spread?: EWTX ATM IV is at 86.30% with IV rank near 17.50%, 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.