FIVN Bear Put Spread Strategy
FIVN (Five9, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. The company offers virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions. Its solution enables its clients to manage these customer interactions across various channels, including voice, video, chat, email, website, social media, click-to-call, callback, and mobile channels, as well as through APIs; and provides natural language processing and automatic speech recognition solutions. The company serves customers in various industries comprising banking and financial services, business process outsourcers, consumer, healthcare, technology, and education. Five9, Inc. was incorporated in 2001 and is headquartered in San Ramon, California.
FIVN (Five9, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $1.62B, a trailing P/E of 28.34, a beta of 1.33 versus the broader market, a 52-week range of 13.29-30.38, average daily share volume of 2.9M, a public-listing history dating back to 2014, approximately 3K full-time employees. These structural characteristics shape how FIVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.33 indicates FIVN 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 FIVN?
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 FIVN snapshot
As of May 15, 2026, spot at $21.65, ATM IV 71.20%, IV rank 46.42%, expected move 20.41%. The bear put spread on FIVN 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 63-day expiry.
Why this bear put spread structure on FIVN specifically: FIVN IV at 71.20% 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 20.41% (roughly $4.42 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FIVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on FIVN should anchor to the underlying notional of $21.65 per share and to the trader's directional view on FIVN stock.
FIVN bear put spread setup
The FIVN 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 FIVN near $21.65, the first option leg uses a $22.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FIVN chain at a 63-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 FIVN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $22.50 | $2.83 |
| Sell 1 | Put | $20.00 | $1.58 |
FIVN bear put spread risk and reward
- Net Premium / Debit
- -$125.00
- Max Profit (per contract)
- $125.00
- Max Loss (per contract)
- -$125.00
- Breakeven(s)
- $21.25
- Risk / Reward Ratio
- 1.000
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.
FIVN bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on FIVN. 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% | +$125.00 |
| $4.80 | -77.8% | +$125.00 |
| $9.58 | -55.7% | +$125.00 |
| $14.37 | -33.6% | +$125.00 |
| $19.15 | -11.5% | +$125.00 |
| $23.94 | +10.6% | -$125.00 |
| $28.72 | +32.7% | -$125.00 |
| $33.51 | +54.8% | -$125.00 |
| $38.30 | +76.9% | -$125.00 |
| $43.08 | +99.0% | -$125.00 |
When traders use bear put spread on FIVN
Bear put spreads on FIVN reduce the cost of a bearish FIVN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
FIVN thesis for this bear put spread
The market-implied 1-standard-deviation range for FIVN extends from approximately $17.23 on the downside to $26.07 on the upside. A FIVN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on FIVN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FIVN IV rank near 46.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on FIVN should anchor more to the directional view and the expected-move geometry. As a Technology name, FIVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FIVN-specific events.
FIVN 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. FIVN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FIVN alongside the broader basket even when FIVN-specific fundamentals are unchanged. Long-premium structures like a bear put spread on FIVN 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 FIVN chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on FIVN?
- A bear put spread on FIVN is the bear put spread strategy applied to FIVN (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 FIVN stock trading near $21.65, the strikes shown on this page are snapped to the nearest listed FIVN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FIVN 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 FIVN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 71.20%), the computed maximum profit is $125.00 per contract and the computed maximum loss is -$125.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FIVN bear put spread?
- The breakeven for the FIVN bear put spread priced on this page is roughly $21.25 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 FIVN market-implied 1-standard-deviation expected move is approximately 20.41%; 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 FIVN?
- Bear put spreads on FIVN reduce the cost of a bearish FIVN 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 FIVN implied volatility affect this bear put spread?
- FIVN ATM IV is at 71.20% with IV rank near 46.42%, 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.