HUT Bear Put Spread Strategy
HUT (Hut 8 Corp.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NASDAQ.
Hut 8 Corp., together with its subsidiaries, operates as an energy infrastructure platform that integrates power, digital infrastructure, and compute at scale to fuel energy-intensive use cases in the United States and Canada. It operates through Power, Digital Infrastructure, Compute, and Other segments. The company offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services. It also engages in the operation of compute infrastructure; and provision, hosting, monitoring, troubleshooting, repair, maintenance, and sale of mining equipment. In addition, the company offers Bitcoin mining; data center and cloud infrastructure services, including colocation services; and ASIC compute, traditional cloud, and AI cloud services. Hut 8 Corp. was founded in 2020 and is based in Miami, Florida.
HUT (Hut 8 Corp.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $10.22B, a beta of 6.11 versus the broader market, a 52-week range of 20.69-140.8, average daily share volume of 4.7M, a public-listing history dating back to 2018, approximately 248 full-time employees. These structural characteristics shape how HUT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 6.11 indicates HUT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bear put spread on HUT?
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.
HUT snapshot
As of August 14, 2026, spot at $86.30, ATM IV 92.33%, IV rank 26.66%, expected move 26.47%. The bear put spread on HUT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this bear put spread structure on HUT specifically: HUT IV at 92.33% is on the cheap side of its 1-year range, which favors premium-buying structures like a HUT bear put spread, with a market-implied 1-standard-deviation move of approximately 26.47% (roughly $22.84 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HUT expiries trade a higher absolute premium for lower per-day decay. Position sizing on HUT should anchor to the underlying notional of $86.30 per share and to the trader's directional view on HUT stock.
HUT bear put spread setup
The HUT bear put spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With HUT at $86.30 on that close, the first option leg uses a $86.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HUT chain at a 28-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 HUT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $86.00 | $8.53 |
| Sell 1 | Put | $82.00 | $6.58 |
HUT bear put spread risk and reward
- Net Premium / Debit
- -$195.00
- Max Profit (per contract)
- $205.00
- Max Loss (per contract)
- -$195.00
- Breakeven(s)
- $84.05
- Risk / Reward Ratio
- 1.051
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.
HUT bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on HUT. 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% | +$205.00 |
| $19.09 | -77.9% | +$205.00 |
| $38.17 | -55.8% | +$205.00 |
| $57.25 | -33.7% | +$205.00 |
| $76.33 | -11.6% | +$205.00 |
| $95.41 | +10.6% | -$195.00 |
| $114.49 | +32.7% | -$195.00 |
| $133.57 | +54.8% | -$195.00 |
| $152.65 | +76.9% | -$195.00 |
| $171.73 | +99.0% | -$195.00 |
When traders use bear put spread on HUT
Bear put spreads on HUT reduce the cost of a bearish HUT stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
HUT thesis for this bear put spread
The market-implied 1-standard-deviation range for HUT extends from approximately $63.46 on the downside to $109.14 on the upside. A HUT bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on HUT, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current HUT IV rank near 26.66% 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 HUT at 92.33%. As a Financial Services name, HUT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HUT-specific events.
HUT 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. HUT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HUT alongside the broader basket even when HUT-specific fundamentals are unchanged. Long-premium structures like a bear put spread on HUT 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 HUT chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on HUT?
- A bear put spread on HUT is the bear put spread strategy applied to HUT (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 HUT stock at $86.30 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HUT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are HUT 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 HUT bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 92.33%), the computed maximum profit is $205.00 per contract and the computed maximum loss is -$195.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HUT bear put spread?
- The breakeven for the HUT bear put spread priced on this page is roughly $84.05 at expiration, derived from the August 14, 2026 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 HUT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.47%; 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 HUT?
- Bear put spreads on HUT reduce the cost of a bearish HUT 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 HUT implied volatility affect this bear put spread?
- HUT ATM IV is at 92.33% with IV rank near 26.66%, 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.