LAMR Bear Put Spread Strategy
LAMR (Lamar Advertising Company), in the Real Estate sector, (REIT - Specialty industry), listed on NASDAQ.
Established in 1902, Lamar Advertising (Nasdaq: LAMR) operates as a major force in the North American outdoor advertising landscape, boasting a portfolio of over 352,000 displays across the United States and Canada. Lamar furnishes advertisers with an extensive array of formats, encompassing traditional billboards, interstate logo displays, transit advertising, and airport placements. This diverse offering assists both burgeoning local businesses and established national brands in consistently engaging expansive audiences. Beyond its extensive collection of traditional out-of-home assets, Lamar proudly operates the United States' largest network of digital billboards, encompassing approximately 3,800 cutting-edge displays for its customers.
LAMR (Lamar Advertising Company) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $15.84B, a trailing P/E of 28.79, a beta of 1.23 versus the broader market, a 52-week range of 113.66-158.69, average daily share volume of 610K, a public-listing history dating back to 1996, approximately 4K full-time employees. These structural characteristics shape how LAMR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places LAMR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LAMR 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 LAMR?
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 LAMR snapshot
As of June 30, 2026, spot at $156.74, ATM IV 22.60%, IV rank 28.97%, expected move 6.48%. The bear put spread on LAMR 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 LAMR specifically: LAMR IV at 22.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a LAMR bear put spread, with a market-implied 1-standard-deviation move of approximately 6.48% (roughly $10.16 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 LAMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on LAMR should anchor to the underlying notional of $156.74 per share and to the trader's directional view on LAMR stock.
LAMR bear put spread setup
The LAMR 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 LAMR near $156.74, the first option leg uses a $154.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LAMR 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 LAMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $154.75 | $2.30 |
| Sell 1 | Put | $149.75 | $1.05 |
LAMR bear put spread risk and reward
- Net Premium / Debit
- -$125.00
- Max Profit (per contract)
- $375.00
- Max Loss (per contract)
- -$125.00
- Breakeven(s)
- $153.50
- Risk / Reward Ratio
- 3.000
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.
LAMR bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on LAMR. 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% | +$375.00 |
| $34.66 | -77.9% | +$375.00 |
| $69.32 | -55.8% | +$375.00 |
| $103.97 | -33.7% | +$375.00 |
| $138.63 | -11.6% | +$375.00 |
| $173.28 | +10.6% | -$125.00 |
| $207.94 | +32.7% | -$125.00 |
| $242.59 | +54.8% | -$125.00 |
| $277.25 | +76.9% | -$125.00 |
| $311.90 | +99.0% | -$125.00 |
When traders use bear put spread on LAMR
Bear put spreads on LAMR reduce the cost of a bearish LAMR stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
LAMR thesis for this bear put spread
The market-implied 1-standard-deviation range for LAMR extends from approximately $146.58 on the downside to $166.90 on the upside. A LAMR bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LAMR, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LAMR IV rank near 28.97% 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 LAMR at 22.60%. As a Real Estate name, LAMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LAMR-specific events.
LAMR 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. LAMR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LAMR alongside the broader basket even when LAMR-specific fundamentals are unchanged. Long-premium structures like a bear put spread on LAMR 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 LAMR chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on LAMR?
- A bear put spread on LAMR is the bear put spread strategy applied to LAMR (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 LAMR stock trading near $156.74, the strikes shown on this page are snapped to the nearest listed LAMR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LAMR 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 LAMR bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 22.60%), the computed maximum profit is $375.00 per contract and the computed maximum loss is -$125.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LAMR bear put spread?
- The breakeven for the LAMR bear put spread priced on this page is roughly $153.50 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 LAMR market-implied 1-standard-deviation expected move is approximately 6.48%; 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 LAMR?
- Bear put spreads on LAMR reduce the cost of a bearish LAMR 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 LAMR implied volatility affect this bear put spread?
- LAMR ATM IV is at 22.60% with IV rank near 28.97%, 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.