HITI Bear Put Spread Strategy
HITI (High Tide Inc.), in the Healthcare sector, (Medical - Pharmaceuticals industry), listed on NASDAQ.
High Tide Inc. engages in the cannabis retail business in Canada, Europe, the United States, and internationally. The company designs, manufactures, and distributes smoking accessories and cannabis lifestyle products. It is also involved in the wholesale and retailing of cannabis products, as well as operates and franchises licensed retail cannabis stores. In addition, the company provides data analytics services, as well as operates Grasscity.com and CBDcity.com platforms. As of August 4, 2022, it operated 139 retail locations in Ontario, Alberta, British Columbia, Manitoba, and Saskatchewan. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018.
HITI (High Tide Inc.) trades in the Healthcare sector, specifically Medical - Pharmaceuticals, with a market capitalization of approximately $211.8M, a beta of 1.07 versus the broader market, a 52-week range of 2.1-4.055, average daily share volume of 464K, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how HITI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places HITI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bear put spread on HITI?
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 HITI snapshot
As of May 15, 2026, spot at $2.42, ATM IV 69.60%, IV rank 17.20%, expected move 19.95%. The bear put spread on HITI 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 HITI specifically: HITI IV at 69.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a HITI bear put spread, with a market-implied 1-standard-deviation move of approximately 19.95% (roughly $0.48 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 HITI expiries trade a higher absolute premium for lower per-day decay. Position sizing on HITI should anchor to the underlying notional of $2.42 per share and to the trader's directional view on HITI stock.
HITI bear put spread setup
The HITI 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 HITI near $2.42, the first option leg uses a $2.42 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HITI 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 HITI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $2.42 | N/A |
| Sell 1 | Put | $2.30 | N/A |
HITI 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.
HITI bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on HITI. 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 HITI
Bear put spreads on HITI reduce the cost of a bearish HITI stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
HITI thesis for this bear put spread
The market-implied 1-standard-deviation range for HITI extends from approximately $1.94 on the downside to $2.90 on the upside. A HITI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on HITI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current HITI IV rank near 17.20% 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 HITI at 69.60%. As a Healthcare name, HITI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HITI-specific events.
HITI 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. HITI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HITI alongside the broader basket even when HITI-specific fundamentals are unchanged. Long-premium structures like a bear put spread on HITI 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 HITI chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on HITI?
- A bear put spread on HITI is the bear put spread strategy applied to HITI (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 HITI stock trading near $2.42, the strikes shown on this page are snapped to the nearest listed HITI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HITI 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 HITI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 69.60%), 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 HITI bear put spread?
- The breakeven for the HITI 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 HITI market-implied 1-standard-deviation expected move is approximately 19.95%; 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 HITI?
- Bear put spreads on HITI reduce the cost of a bearish HITI 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 HITI implied volatility affect this bear put spread?
- HITI ATM IV is at 69.60% with IV rank near 17.20%, 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.