FLGT Bear Put Spread Strategy
FLGT (Fulgent Genetics, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Fulgent Genetics, Inc., together with its subsidiaries, provides COVID-19, molecular diagnostic, and genetic testing services to physicians and patients in the United States and internationally. The company offers genetic tests comprising Focus and Comprehensive oncology panels tests; Beacon carrier screening panels test for inherited conditions; solid tumor molecular profiling for somatic cancer testing; rapid whole genome testing for children in NICU and PICU; newborn genetic analysis panel; single front-line test to detect ataxia-related variants and repeat expansions through sequencing; picture genetics, a patient-initiated genetic testing; whole exome and clinical exome panel tests; whole genome, mutation, and repeat expansion testing services, as well as research service tests. It also provides next generation sequencing and reverse transcription polymerase chain reaction-based tests, as well as antigen-based diagnostic tests for the detection of SARS-CoV-2. In addition, the company offers flow cytometry, a cell analysis technique providing diagnosis, prognosis, and monitoring of malignancies; fluorescence in-situ hybridization for detecting and locating a specific DNA sequence on a chromosome; immunohistochemistry, an imaging technique used to visualize antigens in cells; cytogenetics, which analyzes the chromosome set for numerical and structural abnormalities; and molecular testing that includes hematopoietic and solid tumor molecular assays. The company serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. Fulgent Genetics has strategic partnership with Helio Health, Inc. to commercialize blood-based early cancer detection tests.
FLGT (Fulgent Genetics, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $453.3M, a beta of 0.88 versus the broader market, a 52-week range of 13.46-31.04, average daily share volume of 656K, a public-listing history dating back to 2016, approximately 1K full-time employees. These structural characteristics shape how FLGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places FLGT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bear put spread on FLGT?
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 FLGT snapshot
As of May 15, 2026, spot at $15.74, ATM IV 44.90%, IV rank 10.19%, expected move 12.87%. The bear put spread on FLGT 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 FLGT specifically: FLGT IV at 44.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a FLGT bear put spread, with a market-implied 1-standard-deviation move of approximately 12.87% (roughly $2.03 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 FLGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLGT should anchor to the underlying notional of $15.74 per share and to the trader's directional view on FLGT stock.
FLGT bear put spread setup
The FLGT 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 FLGT near $15.74, the first option leg uses a $15.74 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLGT 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 FLGT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $15.74 | N/A |
| Sell 1 | Put | $14.95 | N/A |
FLGT 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.
FLGT bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on FLGT. 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 FLGT
Bear put spreads on FLGT reduce the cost of a bearish FLGT stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
FLGT thesis for this bear put spread
The market-implied 1-standard-deviation range for FLGT extends from approximately $13.71 on the downside to $17.77 on the upside. A FLGT bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on FLGT, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FLGT IV rank near 10.19% 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 FLGT at 44.90%. As a Healthcare name, FLGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLGT-specific events.
FLGT 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. FLGT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLGT alongside the broader basket even when FLGT-specific fundamentals are unchanged. Long-premium structures like a bear put spread on FLGT 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 FLGT chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on FLGT?
- A bear put spread on FLGT is the bear put spread strategy applied to FLGT (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 FLGT stock trading near $15.74, the strikes shown on this page are snapped to the nearest listed FLGT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FLGT 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 FLGT bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 44.90%), 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 FLGT bear put spread?
- The breakeven for the FLGT 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 FLGT market-implied 1-standard-deviation expected move is approximately 12.87%; 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 FLGT?
- Bear put spreads on FLGT reduce the cost of a bearish FLGT 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 FLGT implied volatility affect this bear put spread?
- FLGT ATM IV is at 44.90% with IV rank near 10.19%, 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.