LEA Bear Put Spread Strategy
LEA (Lear Corporation), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company's E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment's products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity.
LEA (Lear Corporation) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $6.89B, a trailing P/E of 13.29, a beta of 1.22 versus the broader market, a 52-week range of 86.14-142.84, average daily share volume of 568K, a public-listing history dating back to 2009, approximately 174K full-time employees. These structural characteristics shape how LEA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places LEA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LEA 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 LEA?
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 LEA snapshot
As of May 15, 2026, spot at $133.50, ATM IV 34.00%, IV rank 43.05%, expected move 9.75%. The bear put spread on LEA 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 LEA specifically: LEA IV at 34.00% 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 9.75% (roughly $13.01 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 LEA expiries trade a higher absolute premium for lower per-day decay. Position sizing on LEA should anchor to the underlying notional of $133.50 per share and to the trader's directional view on LEA stock.
LEA bear put spread setup
The LEA 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 LEA near $133.50, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LEA 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 LEA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $135.00 | $6.25 |
| Sell 1 | Put | $125.00 | $2.33 |
LEA bear put spread risk and reward
- Net Premium / Debit
- -$392.50
- Max Profit (per contract)
- $607.50
- Max Loss (per contract)
- -$392.50
- Breakeven(s)
- $131.08
- Risk / Reward Ratio
- 1.548
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.
LEA bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on LEA. 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% | +$607.50 |
| $29.53 | -77.9% | +$607.50 |
| $59.04 | -55.8% | +$607.50 |
| $88.56 | -33.7% | +$607.50 |
| $118.08 | -11.6% | +$607.50 |
| $147.59 | +10.6% | -$392.50 |
| $177.11 | +32.7% | -$392.50 |
| $206.63 | +54.8% | -$392.50 |
| $236.14 | +76.9% | -$392.50 |
| $265.66 | +99.0% | -$392.50 |
When traders use bear put spread on LEA
Bear put spreads on LEA reduce the cost of a bearish LEA stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
LEA thesis for this bear put spread
The market-implied 1-standard-deviation range for LEA extends from approximately $120.49 on the downside to $146.51 on the upside. A LEA bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LEA, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LEA IV rank near 43.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on LEA should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, LEA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LEA-specific events.
LEA 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. LEA positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LEA alongside the broader basket even when LEA-specific fundamentals are unchanged. Long-premium structures like a bear put spread on LEA 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 LEA chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on LEA?
- A bear put spread on LEA is the bear put spread strategy applied to LEA (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 LEA stock trading near $133.50, the strikes shown on this page are snapped to the nearest listed LEA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LEA 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 LEA bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 34.00%), the computed maximum profit is $607.50 per contract and the computed maximum loss is -$392.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LEA bear put spread?
- The breakeven for the LEA bear put spread priced on this page is roughly $131.08 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 LEA market-implied 1-standard-deviation expected move is approximately 9.75%; 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 LEA?
- Bear put spreads on LEA reduce the cost of a bearish LEA 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 LEA implied volatility affect this bear put spread?
- LEA ATM IV is at 34.00% with IV rank near 43.05%, 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.