How are IRON 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 IRON bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.80%), the computed maximum profit is $280.00 per contract and the computed maximum loss is -$220.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IRON bear put spread?

The breakeven for the IRON bear put spread priced on this page is roughly $77.80 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 IRON market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IRON implied volatility affect this bear put spread?

IRON ATM IV is at 43.80% with IV rank near 10.14%, 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.

IRON Bear Put Spread Strategy

IRON (Disc Medicine, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Based in Watertown, Massachusetts, Disc Medicine, Inc. operates as a clinical-stage biotechnology company. Its core mission involves the discovery, development, and commercialization of novel therapeutic solutions for individuals suffering from serious hematological diseases. The company is actively constructing a pipeline of drug candidates, designed to address a variety of these conditions by precisely targeting fundamental biological mechanisms related to red blood cell biology, particularly heme biosynthesis and iron homeostasis.

IRON (Disc Medicine, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.09B, a beta of 2.06 versus the broader market, a 52-week range of 40-99.5, average daily share volume of 510K, a public-listing history dating back to 2020, approximately 165 full-time employees. These structural characteristics shape how IRON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.06 indicates IRON 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 IRON?

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.

IRON snapshot

As of August 14, 2026, spot at $79.06, ATM IV 43.80%, IV rank 10.14%, expected move 12.56%. The bear put spread on IRON 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 35-day expiry.

Why this bear put spread structure on IRON specifically: IRON IV at 43.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a IRON bear put spread, with a market-implied 1-standard-deviation move of approximately 12.56% (roughly $9.93 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 IRON expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRON should anchor to the underlying notional of $79.06 per share and to the trader's directional view on IRON stock.

IRON bear put spread setup

The IRON 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 IRON at $79.06 on that close, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRON 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 IRON shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$80.00	$4.85
Sell 1	Put	$75.00	$2.65

IRON bear put spread risk and reward

Net Premium / Debit: -$220.00
Max Profit (per contract): $280.00
Max Loss (per contract): -$220.00
Breakeven(s): $77.80
Risk / Reward Ratio: 1.273

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.

IRON bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on IRON. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$280.00
$17.49	-77.9%	+$280.00
$34.97	-55.8%	+$280.00
$52.45	-33.7%	+$280.00
$69.93	-11.6%	+$280.00
$87.41	+10.6%	-$220.00
$104.89	+32.7%	-$220.00
$122.37	+54.8%	-$220.00
$139.85	+76.9%	-$220.00
$157.33	+99.0%	-$220.00

When traders use bear put spread on IRON

Bear put spreads on IRON reduce the cost of a bearish IRON stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.

IRON thesis for this bear put spread

The market-implied 1-standard-deviation range for IRON extends from approximately $69.13 on the downside to $88.99 on the upside. A IRON bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on IRON, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current IRON IV rank near 10.14% 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 IRON at 43.80%. As a Healthcare name, IRON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRON-specific events.

IRON 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. IRON positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRON alongside the broader basket even when IRON-specific fundamentals are unchanged. Long-premium structures like a bear put spread on IRON 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 IRON chain quotes before placing a trade.

Frequently asked questions

What is a bear put spread on IRON?: A bear put spread on IRON is the bear put spread strategy applied to IRON (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 IRON stock at $79.06 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IRON chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IRON 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 IRON bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.80%), the computed maximum profit is $280.00 per contract and the computed maximum loss is -$220.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IRON bear put spread?: The breakeven for the IRON bear put spread priced on this page is roughly $77.80 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 IRON market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.56%; 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 IRON?: Bear put spreads on IRON reduce the cost of a bearish IRON 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 IRON implied volatility affect this bear put spread?: IRON ATM IV is at 43.80% with IV rank near 10.14%, 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.