HRTG Bear Put Spread Strategy
HRTG (Heritage Insurance Holdings, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.
Heritage Insurance Holdings, Inc. (HRTG) operates through its subsidiaries, specializing in providing comprehensive insurance products for both personal and commercial residential properties. For individual policyholders, the company offers personal residential property coverage, which includes policies for single-family homeowners, condominium owners, and rental properties. This extensive personal coverage is available across seventeen U.S. states: Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia. Additionally, Heritage provides specific personal residential and wind-only property insurance options. In the commercial sector, Heritage delivers residential insurance solutions tailored for properties located in Florida, New Jersey, and New York. The company also holds a licensing credential in the state of Pennsylvania.
HRTG (Heritage Insurance Holdings, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $997.8M, a trailing P/E of 4.60, a beta of 0.91 versus the broader market, a 52-week range of 20.48-36.5, average daily share volume of 409K, a public-listing history dating back to 2014, approximately 542 full-time employees. These structural characteristics shape how HRTG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places HRTG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 4.60 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. HRTG 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 HRTG?
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.
HRTG snapshot
As of August 14, 2026, spot at $33.77, ATM IV 38.10%, IV rank 5.19%, expected move 10.92%. The bear put spread on HRTG below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bear put spread structure on HRTG specifically: HRTG IV at 38.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a HRTG bear put spread, with a market-implied 1-standard-deviation move of approximately 10.92% (roughly $3.69 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HRTG expiries trade a higher absolute premium for lower per-day decay. Position sizing on HRTG should anchor to the underlying notional of $33.77 per share and to the trader's directional view on HRTG stock.
HRTG bear put spread setup
The HRTG 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 HRTG at $33.77 on that close, the first option leg uses a $33.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HRTG chain at a 35-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 HRTG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $33.77 | N/A |
| Sell 1 | Put | $32.08 | N/A |
HRTG 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.
HRTG bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on HRTG. 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 HRTG
Bear put spreads on HRTG reduce the cost of a bearish HRTG stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
HRTG thesis for this bear put spread
The market-implied 1-standard-deviation range for HRTG extends from approximately $30.08 on the downside to $37.46 on the upside. A HRTG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on HRTG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current HRTG IV rank near 5.19% 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 HRTG at 38.10%. As a Financial Services name, HRTG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HRTG-specific events.
HRTG 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. HRTG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HRTG alongside the broader basket even when HRTG-specific fundamentals are unchanged. Long-premium structures like a bear put spread on HRTG 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 HRTG chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on HRTG?
- A bear put spread on HRTG is the bear put spread strategy applied to HRTG (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 HRTG stock at $33.77 on the most recent close, the strikes shown on this page are snapped to the nearest listed HRTG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are HRTG 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 HRTG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 38.10%), 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 HRTG bear put spread?
- The breakeven for the HRTG bear put spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The HRTG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.92%; 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 HRTG?
- Bear put spreads on HRTG reduce the cost of a bearish HRTG 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 HRTG implied volatility affect this bear put spread?
- HRTG ATM IV is at 38.10% with IV rank near 5.19%, 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.