FHB Bear Put Spread Strategy
FHB (First Hawaiian, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States. It operates through three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company accepts various deposit products, including checking and savings accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, and small business loans and leases, as well as commercial lease and auto dealer financing. In addition, the company offers personal installment, credit card, individual investment and financial planning, insurance protection, trust and estate, private banking, retirement planning, treasury, and merchant processing services. It operates a network of 54 branches, which include 49 in Hawaii, 3 in Guam, and 2 in Saipan.
FHB (First Hawaiian, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $3.18B, a trailing P/E of 11.24, a beta of 0.74 versus the broader market, a 52-week range of 22.645-28.35, average daily share volume of 1.9M, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how FHB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places FHB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.24 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FHB 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 FHB?
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 FHB snapshot
As of May 15, 2026, spot at $26.41, ATM IV 38.00%, IV rank 3.16%, expected move 10.89%. The bear put spread on FHB 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 FHB specifically: FHB IV at 38.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a FHB bear put spread, with a market-implied 1-standard-deviation move of approximately 10.89% (roughly $2.88 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 FHB expiries trade a higher absolute premium for lower per-day decay. Position sizing on FHB should anchor to the underlying notional of $26.41 per share and to the trader's directional view on FHB stock.
FHB bear put spread setup
The FHB 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 FHB near $26.41, the first option leg uses a $26.41 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FHB 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 FHB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $26.41 | N/A |
| Sell 1 | Put | $25.09 | N/A |
FHB bear put spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
FHB bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on FHB. 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.
When traders use bear put spread on FHB
Bear put spreads on FHB reduce the cost of a bearish FHB stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
FHB thesis for this bear put spread
The market-implied 1-standard-deviation range for FHB extends from approximately $23.53 on the downside to $29.29 on the upside. A FHB bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on FHB, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FHB IV rank near 3.16% 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 FHB at 38.00%. As a Financial Services name, FHB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FHB-specific events.
FHB 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. FHB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FHB alongside the broader basket even when FHB-specific fundamentals are unchanged. Long-premium structures like a bear put spread on FHB 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 FHB chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on FHB?
- A bear put spread on FHB is the bear put spread strategy applied to FHB (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 FHB stock trading near $26.41, the strikes shown on this page are snapped to the nearest listed FHB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FHB 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 FHB bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FHB bear put spread?
- The breakeven for the FHB bear put spread priced on this page is no defined breakeven on the modeled curve 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 FHB market-implied 1-standard-deviation expected move is approximately 10.89%; 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 FHB?
- Bear put spreads on FHB reduce the cost of a bearish FHB 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 FHB implied volatility affect this bear put spread?
- FHB ATM IV is at 38.00% with IV rank near 3.16%, 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.