FPH Bear Put Spread Strategy
FPH (Five Point Holdings, LLC), in the Real Estate sector, (Real Estate - Development industry), listed on NYSE.
Five Point Holdings, LLC, through its subsidiary, Five Point Operating Company, LP, owns and develops mixed-use and planned communities in Orange County, Los Angeles County, and San Francisco County. The company operates in four segments: Valencia, San Francisco, Great Park, and Commercial. It sells residential and commercial land sites to homebuilders, commercial developers, and commercial buyers; operates and owns a commercial office, medical campus, and other properties; and provides development and property management services. The company was formerly known as Newhall Holding Company, LLC and changed its name to Five Point Holdings, LLC in May 2016. Five Point Holdings, LLC was incorporated in 2009 and is headquartered in Irvine, California.
FPH (Five Point Holdings, LLC) trades in the Real Estate sector, specifically Real Estate - Development, with a market capitalization of approximately $340.4M, a trailing P/E of 7.60, a beta of 1.35 versus the broader market, a 52-week range of 4.72-6.64, average daily share volume of 188K, a public-listing history dating back to 2017, approximately 88 full-time employees. These structural characteristics shape how FPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates FPH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.60 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a bear put spread on FPH?
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 FPH snapshot
As of May 15, 2026, spot at $4.75, ATM IV 64.40%, IV rank 16.58%, expected move 18.46%. The bear put spread on FPH 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 FPH specifically: FPH IV at 64.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a FPH bear put spread, with a market-implied 1-standard-deviation move of approximately 18.46% (roughly $0.88 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 FPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on FPH should anchor to the underlying notional of $4.75 per share and to the trader's directional view on FPH stock.
FPH bear put spread setup
The FPH 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 FPH near $4.75, the first option leg uses a $4.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FPH 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 FPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $4.75 | N/A |
| Sell 1 | Put | $4.51 | N/A |
FPH 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.
FPH bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on FPH. 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 FPH
Bear put spreads on FPH reduce the cost of a bearish FPH stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
FPH thesis for this bear put spread
The market-implied 1-standard-deviation range for FPH extends from approximately $3.87 on the downside to $5.63 on the upside. A FPH bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on FPH, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FPH IV rank near 16.58% 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 FPH at 64.40%. As a Real Estate name, FPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FPH-specific events.
FPH 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. FPH positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FPH alongside the broader basket even when FPH-specific fundamentals are unchanged. Long-premium structures like a bear put spread on FPH 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 FPH chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on FPH?
- A bear put spread on FPH is the bear put spread strategy applied to FPH (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 FPH stock trading near $4.75, the strikes shown on this page are snapped to the nearest listed FPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FPH 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 FPH bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 64.40%), 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 FPH bear put spread?
- The breakeven for the FPH 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 FPH market-implied 1-standard-deviation expected move is approximately 18.46%; 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 FPH?
- Bear put spreads on FPH reduce the cost of a bearish FPH 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 FPH implied volatility affect this bear put spread?
- FPH ATM IV is at 64.40% with IV rank near 16.58%, 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.