LDI Bear Put Spread Strategy
LDI (loanDepot, Inc.), in the Financial Services sector, (Financial - Mortgages industry), listed on NYSE.
loanDepot, Inc. engages in originating, financing, selling, and servicing residential mortgage loans in the United States. It offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans. The company also provides settlement services, which include captive title and escrow business; real estate services that cover captive real estate referral business; and insurance services, including services to homeowners, as well as other consumer insurance policies. The company was founded in 2010 and is headquartered in Foothill Ranch, California.
LDI (loanDepot, Inc.) trades in the Financial Services sector, specifically Financial - Mortgages, with a market capitalization of approximately $405.4M, a beta of 3.11 versus the broader market, a 52-week range of 1.17-5.05, average daily share volume of 2.3M, a public-listing history dating back to 2021, approximately 5K full-time employees. These structural characteristics shape how LDI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.11 indicates LDI 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 LDI?
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 LDI snapshot
As of May 15, 2026, spot at $1.27, ATM IV 126.41%, IV rank 23.88%, expected move 36.24%. The bear put spread on LDI 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 28-day expiry.
Why this bear put spread structure on LDI specifically: LDI IV at 126.41% is on the cheap side of its 1-year range, which favors premium-buying structures like a LDI bear put spread, with a market-implied 1-standard-deviation move of approximately 36.24% (roughly $0.46 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 LDI expiries trade a higher absolute premium for lower per-day decay. Position sizing on LDI should anchor to the underlying notional of $1.27 per share and to the trader's directional view on LDI stock.
LDI bear put spread setup
The LDI 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 LDI near $1.27, the first option leg uses a $1.27 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LDI 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 LDI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $1.27 | N/A |
| Sell 1 | Put | $1.21 | N/A |
LDI 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.
LDI bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on LDI. 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 LDI
Bear put spreads on LDI reduce the cost of a bearish LDI stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
LDI thesis for this bear put spread
The market-implied 1-standard-deviation range for LDI extends from approximately $0.81 on the downside to $1.73 on the upside. A LDI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LDI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LDI IV rank near 23.88% 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 LDI at 126.41%. As a Financial Services name, LDI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LDI-specific events.
LDI 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. LDI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LDI alongside the broader basket even when LDI-specific fundamentals are unchanged. Long-premium structures like a bear put spread on LDI 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 LDI chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on LDI?
- A bear put spread on LDI is the bear put spread strategy applied to LDI (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 LDI stock trading near $1.27, the strikes shown on this page are snapped to the nearest listed LDI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LDI 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 LDI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 126.41%), 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 LDI bear put spread?
- The breakeven for the LDI 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 LDI market-implied 1-standard-deviation expected move is approximately 36.24%; 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 LDI?
- Bear put spreads on LDI reduce the cost of a bearish LDI 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 LDI implied volatility affect this bear put spread?
- LDI ATM IV is at 126.41% with IV rank near 23.88%, 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.