FTS Bear Put Spread Strategy
FTS (Fortis Inc.), in the Utilities sector, (Regulated Electric industry), listed on NYSE.
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. It generates, transmits, and distributes electricity to approximately 438,000 retail customers in southeastern Arizona; and 100,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 3,485 megawatts (MW), including 53 MW of solar capacity and 252 MV of wind capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 65 MW; and distributes natural gas to approximately 1,065,000 residential, commercial, and industrial customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 577,000 customers in southern and central Alberta; owns 4 hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to five hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador with an installed generating capacity of 143 MW; and on Prince Edward Island with a generating capacity of 130 MW. Additionally, it provides integrated electric utility service to approximately 68,000 customers in Ontario; approximately 272,000 customers in Newfoundland and Labrador; approximately 32,000 customers on Grand Cayman, Cayman Islands; and approximately 16,000 customers on certain islands in Turks and Caicos.
FTS (Fortis Inc.) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $28.52B, a trailing P/E of 21.73, a beta of 0.43 versus the broader market, a 52-week range of 46.46-58.78, average daily share volume of 763K, a public-listing history dating back to 2010, approximately 10K full-time employees. These structural characteristics shape how FTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.43 indicates FTS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FTS 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 FTS?
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 FTS snapshot
As of May 14, 2026, spot at $56.44, ATM IV 14.10%, IV rank 3.31%, expected move 4.04%. The bear put spread on FTS 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 35-day expiry.
Why this bear put spread structure on FTS specifically: FTS IV at 14.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a FTS bear put spread, with a market-implied 1-standard-deviation move of approximately 4.04% (roughly $2.28 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTS should anchor to the underlying notional of $56.44 per share and to the trader's directional view on FTS stock.
FTS bear put spread setup
The FTS 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 FTS near $56.44, the first option leg uses a $56.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTS chain at a 35-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 FTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $56.44 | N/A |
| Sell 1 | Put | $53.62 | N/A |
FTS 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.
FTS bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on FTS. 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 FTS
Bear put spreads on FTS reduce the cost of a bearish FTS stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
FTS thesis for this bear put spread
The market-implied 1-standard-deviation range for FTS extends from approximately $54.16 on the downside to $58.72 on the upside. A FTS bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on FTS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FTS IV rank near 3.31% 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 FTS at 14.10%. As a Utilities name, FTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTS-specific events.
FTS 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. FTS positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTS alongside the broader basket even when FTS-specific fundamentals are unchanged. Long-premium structures like a bear put spread on FTS 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 FTS chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on FTS?
- A bear put spread on FTS is the bear put spread strategy applied to FTS (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 FTS stock trading near $56.44, the strikes shown on this page are snapped to the nearest listed FTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FTS 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 FTS bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 14.10%), 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 FTS bear put spread?
- The breakeven for the FTS 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 FTS market-implied 1-standard-deviation expected move is approximately 4.04%; 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 FTS?
- Bear put spreads on FTS reduce the cost of a bearish FTS 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 FTS implied volatility affect this bear put spread?
- FTS ATM IV is at 14.10% with IV rank near 3.31%, 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.