FLNG Bear Put Spread Strategy
FLNG (FLEX LNG Ltd), in the Industrials sector, (Marine Shipping industry), listed on NYSE.
FLEX LNG Ltd., together with its subsidiaries, engages in the seaborne transportation of liquefied natural gas (LNG) worldwide. As of December 31, 2025, its fleet consists of 13 LNG carriers in operation. The company was incorporated in 2006 and is based in Hamilton, Bermuda.
FLNG (FLEX LNG Ltd) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $1.59B, a trailing P/E of 21.09, a beta of 0.17 versus the broader market, a 52-week range of 21.72-33.4, average daily share volume of 461K, a public-listing history dating back to 2019, approximately 9 full-time employees. These structural characteristics shape how FLNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.17 indicates FLNG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FLNG 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 FLNG?
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 FLNG snapshot
As of June 30, 2026, spot at $28.08, ATM IV 29.40%, IV rank 47.75%, expected move 8.43%. The bear put spread on FLNG 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 FLNG specifically: FLNG IV at 29.40% 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 8.43% (roughly $2.37 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 FLNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLNG should anchor to the underlying notional of $28.08 per share and to the trader's directional view on FLNG stock.
FLNG bear put spread setup
The FLNG 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 FLNG near $28.08, the first option leg uses a $28.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLNG 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 FLNG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $28.00 | $0.70 |
| Sell 1 | Put | $27.00 | $0.35 |
FLNG bear put spread risk and reward
- Net Premium / Debit
- -$35.00
- Max Profit (per contract)
- $65.00
- Max Loss (per contract)
- -$35.00
- Breakeven(s)
- $27.65
- Risk / Reward Ratio
- 1.857
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.
FLNG bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on FLNG. 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% | +$65.00 |
| $6.22 | -77.9% | +$65.00 |
| $12.43 | -55.8% | +$65.00 |
| $18.63 | -33.6% | +$65.00 |
| $24.84 | -11.5% | +$65.00 |
| $31.05 | +10.6% | -$35.00 |
| $37.26 | +32.7% | -$35.00 |
| $43.46 | +54.8% | -$35.00 |
| $49.67 | +76.9% | -$35.00 |
| $55.88 | +99.0% | -$35.00 |
When traders use bear put spread on FLNG
Bear put spreads on FLNG reduce the cost of a bearish FLNG stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
FLNG thesis for this bear put spread
The market-implied 1-standard-deviation range for FLNG extends from approximately $25.71 on the downside to $30.45 on the upside. A FLNG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on FLNG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FLNG IV rank near 47.75% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on FLNG should anchor more to the directional view and the expected-move geometry. As a Industrials name, FLNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLNG-specific events.
FLNG 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. FLNG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLNG alongside the broader basket even when FLNG-specific fundamentals are unchanged. Long-premium structures like a bear put spread on FLNG 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 FLNG chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on FLNG?
- A bear put spread on FLNG is the bear put spread strategy applied to FLNG (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 FLNG stock trading near $28.08, the strikes shown on this page are snapped to the nearest listed FLNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FLNG 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 FLNG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 29.40%), the computed maximum profit is $65.00 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FLNG bear put spread?
- The breakeven for the FLNG bear put spread priced on this page is roughly $27.65 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 FLNG market-implied 1-standard-deviation expected move is approximately 8.43%; 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 FLNG?
- Bear put spreads on FLNG reduce the cost of a bearish FLNG 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 FLNG implied volatility affect this bear put spread?
- FLNG ATM IV is at 29.40% with IV rank near 47.75%, 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.