HG Bear Put Spread Strategy
HG (Hamilton Insurance Group, Ltd.), in the Financial Services sector, (Insurance - Reinsurance industry), listed on NYSE.
Hamilton Insurance Group, Ltd., through its subsidiaries, engages in underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property treaty reinsurance; and specialty reinsurance solutions, including accident and health, aviation, crisis management, financial lines, marine and energy, multiline specialty, and satellite reinsurance. It also provides accident and health, cyber, excess energy, environmental, financial lines, fine art and specie, kidnap and ransom, M&A, marine and energy liability, political risk, professional liability, property binders, property D&F, space, upstream energy, general and excess casualty, war and terrorism, allied medical, management liability, medical professionals, products liability and contractors, and small business casualty insurance plans. The company was incorporated in 2013 and is based in Pembroke, Bermuda with additional locations in Dublin, Ireland; London, United Kingdom; Miami, Florida; New York, New York; and Glen Allen, Virginia.
HG (Hamilton Insurance Group, Ltd.) trades in the Financial Services sector, specifically Insurance - Reinsurance, with a market capitalization of approximately $3.02B, a trailing P/E of 4.88, a beta of 0.70 versus the broader market, a 52-week range of 20.39-33.715, average daily share volume of 519K, a public-listing history dating back to 2023, approximately 600 full-time employees. These structural characteristics shape how HG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.70 indicates HG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 4.88 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. HG 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 HG?
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 HG snapshot
As of May 15, 2026, spot at $31.89, ATM IV 34.30%, IV rank 18.59%, expected move 9.83%. The bear put spread on HG 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 HG specifically: HG IV at 34.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a HG bear put spread, with a market-implied 1-standard-deviation move of approximately 9.83% (roughly $3.14 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 HG expiries trade a higher absolute premium for lower per-day decay. Position sizing on HG should anchor to the underlying notional of $31.89 per share and to the trader's directional view on HG stock.
HG bear put spread setup
The HG 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 HG near $31.89, the first option leg uses a $31.89 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HG 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 HG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $31.89 | N/A |
| Sell 1 | Put | $30.30 | N/A |
HG 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.
HG bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on HG. 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 HG
Bear put spreads on HG reduce the cost of a bearish HG stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
HG thesis for this bear put spread
The market-implied 1-standard-deviation range for HG extends from approximately $28.75 on the downside to $35.03 on the upside. A HG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on HG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current HG IV rank near 18.59% 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 HG at 34.30%. As a Financial Services name, HG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HG-specific events.
HG 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. HG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HG alongside the broader basket even when HG-specific fundamentals are unchanged. Long-premium structures like a bear put spread on HG 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 HG chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on HG?
- A bear put spread on HG is the bear put spread strategy applied to HG (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 HG stock trading near $31.89, the strikes shown on this page are snapped to the nearest listed HG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HG 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 HG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 34.30%), 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 HG bear put spread?
- The breakeven for the HG 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 HG market-implied 1-standard-deviation expected move is approximately 9.83%; 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 HG?
- Bear put spreads on HG reduce the cost of a bearish HG 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 HG implied volatility affect this bear put spread?
- HG ATM IV is at 34.30% with IV rank near 18.59%, 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.