HROW Bear Put Spread Strategy
HROW (Harrow Health, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
Harrow Health, Inc. operates as a healthcare enterprise with a specialized focus on ophthalmic solutions. The company's portfolio includes ImprimisRx, a business dedicated to ophthalmology outsourcing and pharmaceutical compounding, as well as DEXYCU, a product utilized for managing post-operative inflammation. Beyond its direct offerings, Harrow Health maintains equity investments in several pharmaceutical ventures. These encompass Surface Ophthalmics, Inc., a clinical-stage firm actively developing and commercializing therapeutic agents for ocular surface diseases; Melt Pharmaceuticals, Inc., another clinical-stage entity concentrating on proprietary non-intravenous sedation and anesthesia treatments for various medical procedures conducted in hospital, outpatient, and office environments; and Eton Pharmaceuticals, Inc., a commercial-stage company involved in the creation and market launch of drug products. Moreover, Harrow Health holds royalty interests in four investigational drug candidates currently being advanced by Surface Ophthalmics, Inc. and Melt Pharmaceuticals, Inc. The company, initially incorporated in 2006 and based in San Diego, California, underwent a name change from Imprimis Pharmaceuticals, Inc. to Harrow Health, Inc. in December 2018.
HROW (Harrow Health, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $1.57B, a beta of 0.28 versus the broader market, a 52-week range of 28.54-54.85, average daily share volume of 774K, a public-listing history dating back to 2007, approximately 382 full-time employees. These structural characteristics shape how HROW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.28 indicates HROW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a bear put spread on HROW?
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 HROW snapshot
As of June 30, 2026, spot at $42.36, ATM IV 57.80%, IV rank 14.27%, expected move 16.57%. The bear put spread on HROW 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 17-day expiry.
Why this bear put spread structure on HROW specifically: HROW IV at 57.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a HROW bear put spread, with a market-implied 1-standard-deviation move of approximately 16.57% (roughly $7.02 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HROW expiries trade a higher absolute premium for lower per-day decay. Position sizing on HROW should anchor to the underlying notional of $42.36 per share and to the trader's directional view on HROW stock.
HROW bear put spread setup
The HROW 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 HROW near $42.36, the first option leg uses a $42.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HROW chain at a 17-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 HROW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $42.00 | $1.58 |
| Sell 1 | Put | $40.00 | $1.23 |
HROW bear put spread risk and reward
- Net Premium / Debit
- -$35.00
- Max Profit (per contract)
- $165.00
- Max Loss (per contract)
- -$35.00
- Breakeven(s)
- $41.65
- Risk / Reward Ratio
- 4.714
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.
HROW bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on HROW. 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% | +$165.00 |
| $9.37 | -77.9% | +$165.00 |
| $18.74 | -55.8% | +$165.00 |
| $28.10 | -33.7% | +$165.00 |
| $37.47 | -11.5% | +$165.00 |
| $46.83 | +10.6% | -$35.00 |
| $56.20 | +32.7% | -$35.00 |
| $65.56 | +54.8% | -$35.00 |
| $74.93 | +76.9% | -$35.00 |
| $84.29 | +99.0% | -$35.00 |
When traders use bear put spread on HROW
Bear put spreads on HROW reduce the cost of a bearish HROW stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
HROW thesis for this bear put spread
The market-implied 1-standard-deviation range for HROW extends from approximately $35.34 on the downside to $49.38 on the upside. A HROW bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on HROW, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current HROW IV rank near 14.27% 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 HROW at 57.80%. As a Healthcare name, HROW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HROW-specific events.
HROW 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. HROW positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HROW alongside the broader basket even when HROW-specific fundamentals are unchanged. Long-premium structures like a bear put spread on HROW 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 HROW chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on HROW?
- A bear put spread on HROW is the bear put spread strategy applied to HROW (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 HROW stock trading near $42.36, the strikes shown on this page are snapped to the nearest listed HROW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HROW 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 HROW bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 57.80%), the computed maximum profit is $165.00 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HROW bear put spread?
- The breakeven for the HROW bear put spread priced on this page is roughly $41.65 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 HROW market-implied 1-standard-deviation expected move is approximately 16.57%; 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 HROW?
- Bear put spreads on HROW reduce the cost of a bearish HROW 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 HROW implied volatility affect this bear put spread?
- HROW ATM IV is at 57.80% with IV rank near 14.27%, 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.