KNX Bear Put Spread Strategy
KNX (Knight-Swift Transportation Holdings Inc.), in the Industrials sector, (Trucking industry), listed on NYSE.
Knight-Swift Transportation Holdings Inc. (KNX) stands as a prominent provider of transportation services, specializing in truckload freight solutions for clients throughout the United States, Mexico, and Canada. Its operational scope is segmented into four key areas: Trucking, Logistics, Less-than-truckload (LTL), and Intermodal. Under its Trucking segment, the company manages a diverse portfolio of services, including irregular route, dedicated, temperature-controlled (refrigerated), flatbed, expedited, dry van, drayage, and cross-border transportation for a wide variety of goods and materials. Beyond its core trucking operations, Knight-Swift provides logistics and intermodal solutions, which include freight brokerage, intermodal services, comprehensive freight management, and various non-trucking offerings. The firm also extends a suite of support services, such as vehicle repair and maintenance, warranty coverage, insurance, equipment leasing, manufacturing and warehousing of trailer parts, and professional driver training through its academy. Additionally, Knight-Swift facilitates national transportation requirements through its regional direct services, utilizing third-party carriers to cover regions outside its proprietary network.
KNX (Knight-Swift Transportation Holdings Inc.) trades in the Industrials sector, specifically Trucking, with a market capitalization of approximately $12.45B, a trailing P/E of 366.09, a beta of 1.20 versus the broader market, a 52-week range of 38.63-82.86, average daily share volume of 4.1M, a public-listing history dating back to 1994, approximately 35K full-time employees. These structural characteristics shape how KNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.20 places KNX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 366.09 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. KNX 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 KNX?
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 KNX snapshot
As of June 30, 2026, spot at $78.16, ATM IV 39.80%, IV rank 41.24%, expected move 11.41%. The bear put spread on KNX 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 KNX specifically: KNX IV at 39.80% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 11.41% (roughly $8.92 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 KNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNX should anchor to the underlying notional of $78.16 per share and to the trader's directional view on KNX stock.
KNX bear put spread setup
The KNX 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 KNX near $78.16, the first option leg uses a $77.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KNX 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 KNX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $77.50 | $2.28 |
| Sell 1 | Put | $75.00 | $1.38 |
KNX bear put spread risk and reward
- Net Premium / Debit
- -$90.00
- Max Profit (per contract)
- $160.00
- Max Loss (per contract)
- -$90.00
- Breakeven(s)
- $76.60
- Risk / Reward Ratio
- 1.778
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.
KNX bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on KNX. 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% | +$160.00 |
| $17.29 | -77.9% | +$160.00 |
| $34.57 | -55.8% | +$160.00 |
| $51.85 | -33.7% | +$160.00 |
| $69.13 | -11.6% | +$160.00 |
| $86.41 | +10.6% | -$90.00 |
| $103.69 | +32.7% | -$90.00 |
| $120.97 | +54.8% | -$90.00 |
| $138.25 | +76.9% | -$90.00 |
| $155.53 | +99.0% | -$90.00 |
When traders use bear put spread on KNX
Bear put spreads on KNX reduce the cost of a bearish KNX stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
KNX thesis for this bear put spread
The market-implied 1-standard-deviation range for KNX extends from approximately $69.24 on the downside to $87.08 on the upside. A KNX bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on KNX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current KNX IV rank near 41.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on KNX should anchor more to the directional view and the expected-move geometry. As a Industrials name, KNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KNX-specific events.
KNX 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. KNX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KNX alongside the broader basket even when KNX-specific fundamentals are unchanged. Long-premium structures like a bear put spread on KNX 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 KNX chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on KNX?
- A bear put spread on KNX is the bear put spread strategy applied to KNX (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 KNX stock trading near $78.16, the strikes shown on this page are snapped to the nearest listed KNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KNX 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 KNX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 39.80%), the computed maximum profit is $160.00 per contract and the computed maximum loss is -$90.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KNX bear put spread?
- The breakeven for the KNX bear put spread priced on this page is roughly $76.60 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 KNX market-implied 1-standard-deviation expected move is approximately 11.41%; 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 KNX?
- Bear put spreads on KNX reduce the cost of a bearish KNX 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 KNX implied volatility affect this bear put spread?
- KNX ATM IV is at 39.80% with IV rank near 41.24%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.