HRMY Bear Put Spread Strategy
HRMY (Harmony Biosciences Holdings, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Harmony Biosciences Holdings, Inc., a commercial-stage pharmaceutical company, develops and commercializes therapies for patients with rare neurological disorders in the United States. Its product, WAKIX is a medication for the treatment of excessive daytime sleepiness in adult patients with narcolepsy. The company was formerly known as Harmony Biosciences II, Inc. and changed its name to Harmony Biosciences Holdings, Inc. in February 2020. Harmony Biosciences Holdings, Inc. was incorporated in 2017 and is based in Plymouth Meeting, Pennsylvania.
HRMY (Harmony Biosciences Holdings, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.78B, a trailing P/E of 12.24, a beta of 0.97 versus the broader market, a 52-week range of 25.52-40.87, average daily share volume of 1.0M, a public-listing history dating back to 2020, approximately 268 full-time employees. These structural characteristics shape how HRMY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places HRMY 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 HRMY?
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 HRMY snapshot
As of May 15, 2026, spot at $30.18, ATM IV 54.00%, IV rank 25.45%, expected move 15.48%. The bear put spread on HRMY 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 HRMY specifically: HRMY IV at 54.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a HRMY bear put spread, with a market-implied 1-standard-deviation move of approximately 15.48% (roughly $4.67 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 HRMY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HRMY should anchor to the underlying notional of $30.18 per share and to the trader's directional view on HRMY stock.
HRMY bear put spread setup
The HRMY 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 HRMY near $30.18, the first option leg uses a $30.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HRMY 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 HRMY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $30.18 | N/A |
| Sell 1 | Put | $28.67 | N/A |
HRMY 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.
HRMY bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on HRMY. 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 HRMY
Bear put spreads on HRMY reduce the cost of a bearish HRMY stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
HRMY thesis for this bear put spread
The market-implied 1-standard-deviation range for HRMY extends from approximately $25.51 on the downside to $34.85 on the upside. A HRMY bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on HRMY, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current HRMY IV rank near 25.45% 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 HRMY at 54.00%. As a Healthcare name, HRMY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HRMY-specific events.
HRMY 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. HRMY positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HRMY alongside the broader basket even when HRMY-specific fundamentals are unchanged. Long-premium structures like a bear put spread on HRMY 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 HRMY chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on HRMY?
- A bear put spread on HRMY is the bear put spread strategy applied to HRMY (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 HRMY stock trading near $30.18, the strikes shown on this page are snapped to the nearest listed HRMY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HRMY 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 HRMY bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 54.00%), 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 HRMY bear put spread?
- The breakeven for the HRMY 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 HRMY market-implied 1-standard-deviation expected move is approximately 15.48%; 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 HRMY?
- Bear put spreads on HRMY reduce the cost of a bearish HRMY 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 HRMY implied volatility affect this bear put spread?
- HRMY ATM IV is at 54.00% with IV rank near 25.45%, 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.