How are HII 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 HII bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 34.20%), the computed maximum profit is $1,225.00 per contract and the computed maximum loss is -$775.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HII bear put spread?

The breakeven for the HII bear put spread priced on this page is roughly $322.25 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 HII market-implied 1-standard-deviation expected move is approximately 9.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HII implied volatility affect this bear put spread?

HII ATM IV is at 34.20% with IV rank near 30.07%, 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.

HII Bear Put Spread Strategy

HII (Huntington Ingalls Industries, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

Huntington Ingalls Industries, Inc. engages in designing, building, overhauling, and repairing military ships in the United States. It operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of ships.

HII (Huntington Ingalls Industries, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $13.17B, a trailing P/E of 21.71, a beta of 0.29 versus the broader market, a 52-week range of 215.05-460, average daily share volume of 520K, a public-listing history dating back to 2011, approximately 44K full-time employees. These structural characteristics shape how HII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.29 indicates HII has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HII 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 HII?

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 HII snapshot

As of May 15, 2026, spot at $326.16, ATM IV 34.20%, IV rank 30.07%, expected move 9.80%. The bear put spread on HII 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 HII specifically: HII IV at 34.20% 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 9.80% (roughly $31.98 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 HII expiries trade a higher absolute premium for lower per-day decay. Position sizing on HII should anchor to the underlying notional of $326.16 per share and to the trader's directional view on HII stock.

HII bear put spread setup

The HII 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 HII near $326.16, the first option leg uses a $330.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HII 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 HII shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$330.00	$15.35
Sell 1	Put	$310.00	$7.60

HII bear put spread risk and reward

Net Premium / Debit: -$775.00
Max Profit (per contract): $1,225.00
Max Loss (per contract): -$775.00
Breakeven(s): $322.25
Risk / Reward Ratio: 1.581

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.

HII bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on HII. 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%	+$1,225.00
$72.12	-77.9%	+$1,225.00
$144.24	-55.8%	+$1,225.00
$216.35	-33.7%	+$1,225.00
$288.47	-11.6%	+$1,225.00
$360.58	+10.6%	-$775.00
$432.70	+32.7%	-$775.00
$504.81	+54.8%	-$775.00
$576.93	+76.9%	-$775.00
$649.04	+99.0%	-$775.00

When traders use bear put spread on HII

Bear put spreads on HII reduce the cost of a bearish HII stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.

HII thesis for this bear put spread

The market-implied 1-standard-deviation range for HII extends from approximately $294.18 on the downside to $358.14 on the upside. A HII bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on HII, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current HII IV rank near 30.07% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on HII should anchor more to the directional view and the expected-move geometry. As a Industrials name, HII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HII-specific events.

HII 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. HII positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HII alongside the broader basket even when HII-specific fundamentals are unchanged. Long-premium structures like a bear put spread on HII 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 HII chain quotes before placing a trade.

Frequently asked questions

What is a bear put spread on HII?: A bear put spread on HII is the bear put spread strategy applied to HII (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 HII stock trading near $326.16, the strikes shown on this page are snapped to the nearest listed HII chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HII 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 HII bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 34.20%), the computed maximum profit is $1,225.00 per contract and the computed maximum loss is -$775.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HII bear put spread?: The breakeven for the HII bear put spread priced on this page is roughly $322.25 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 HII market-implied 1-standard-deviation expected move is approximately 9.80%; 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 HII?: Bear put spreads on HII reduce the cost of a bearish HII 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 HII implied volatility affect this bear put spread?: HII ATM IV is at 34.20% with IV rank near 30.07%, 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.