KRC Bear Put Spread Strategy
KRC (Kilroy Realty Corporation), in the Real Estate sector, (REIT - Office industry), listed on NYSE.
Kilroy Realty Corporation (NYSE: KRC, the company, KRC) is a leading West Coast landlord and developer, with a major presence in San Diego, Greater Los Angeles, the San Francisco Bay Area, and the Pacific Northwest. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity, productivity and employee retention for some of the world's leading technology, entertainment, life science and business services companies. KRC is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office and mixed-use projects. As of September 30, 2020, KRC's stabilized portfolio totaled approximately 14.3 million square feet of primarily office and life science space that was 92.2% occupied and 95.5% leased. The company also had 808 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 85.0% and 37.5%, respectively.
KRC (Kilroy Realty Corporation) trades in the Real Estate sector, specifically REIT - Office, with a market capitalization of approximately $4.00B, a trailing P/E of 18.60, a beta of 1.16 versus the broader market, a 52-week range of 27.36-45.03, average daily share volume of 2.2M, a public-listing history dating back to 1997, approximately 229 full-time employees. These structural characteristics shape how KRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.16 places KRC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. KRC 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 KRC?
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 KRC snapshot
As of May 15, 2026, spot at $34.38, ATM IV 36.50%, IV rank 6.31%, expected move 10.46%. The bear put spread on KRC 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 34-day expiry.
Why this bear put spread structure on KRC specifically: KRC IV at 36.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a KRC bear put spread, with a market-implied 1-standard-deviation move of approximately 10.46% (roughly $3.60 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRC should anchor to the underlying notional of $34.38 per share and to the trader's directional view on KRC stock.
KRC bear put spread setup
The KRC 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 KRC near $34.38, the first option leg uses a $34.38 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRC chain at a 34-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 KRC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $34.38 | N/A |
| Sell 1 | Put | $32.66 | N/A |
KRC 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.
KRC bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on KRC. 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 KRC
Bear put spreads on KRC reduce the cost of a bearish KRC stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
KRC thesis for this bear put spread
The market-implied 1-standard-deviation range for KRC extends from approximately $30.78 on the downside to $37.98 on the upside. A KRC bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on KRC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current KRC IV rank near 6.31% 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 KRC at 36.50%. As a Real Estate name, KRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRC-specific events.
KRC 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. KRC positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRC alongside the broader basket even when KRC-specific fundamentals are unchanged. Long-premium structures like a bear put spread on KRC 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 KRC chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on KRC?
- A bear put spread on KRC is the bear put spread strategy applied to KRC (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 KRC stock trading near $34.38, the strikes shown on this page are snapped to the nearest listed KRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KRC 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 KRC bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 36.50%), 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 KRC bear put spread?
- The breakeven for the KRC bear put spread priced on this page is no defined breakeven on the modeled curve 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 KRC market-implied 1-standard-deviation expected move is approximately 10.46%; 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 KRC?
- Bear put spreads on KRC reduce the cost of a bearish KRC 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 KRC implied volatility affect this bear put spread?
- KRC ATM IV is at 36.50% with IV rank near 6.31%, 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.