LHX Bear Put Spread Strategy
LHX (L3Harris Technologies, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
L3Harris Technologies, Inc., an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide. The company's Integrated Mission Systems segment provides multi-mission intelligence, surveillance, and reconnaissance (ISR) systems; and communication systems, as well as fleet management support, sensor development, modification, and periodic depot maintenance services for ISR and airborne missions. It also manufactures and integrates mission systems for maritime platforms, such as signals intelligence and multi-intelligence platforms; unmanned surface and undersea autonomous solutions; and power and ship control systems and other electronic and electrical products and systems. In addition, this segment offers advanced electro-optical and infrared solutions. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber defense solutions; mission avionics; and electronic warfare systems. The company's Communication Systems segment provides tactical communications; broadband secured mobile networked communication equipment, including airborne, space, and surface data link terminals, ground stations, and transportable tactical satellite communication (SATCOM) systems for use in manned aircraft, unmanned aerial vehicles, and naval ships; and helmet and weapon mounted integrated night vision systems.
LHX (L3Harris Technologies, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $56.81B, a trailing P/E of 32.90, a beta of 0.75 versus the broader market, a 52-week range of 220.87-379.23, average daily share volume of 1.7M, a public-listing history dating back to 1981, approximately 47K full-time employees. These structural characteristics shape how LHX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.75 places LHX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LHX 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 LHX?
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 LHX snapshot
As of May 15, 2026, spot at $303.83, ATM IV 28.92%, IV rank 55.00%, expected move 8.29%. The bear put spread on LHX 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 LHX specifically: LHX IV at 28.92% 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 8.29% (roughly $25.19 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 LHX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LHX should anchor to the underlying notional of $303.83 per share and to the trader's directional view on LHX stock.
LHX bear put spread setup
The LHX 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 LHX near $303.83, the first option leg uses a $305.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LHX 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 LHX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $305.00 | $10.45 |
| Sell 1 | Put | $290.00 | $4.50 |
LHX bear put spread risk and reward
- Net Premium / Debit
- -$595.00
- Max Profit (per contract)
- $905.00
- Max Loss (per contract)
- -$595.00
- Breakeven(s)
- $299.05
- Risk / Reward Ratio
- 1.521
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.
LHX bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on LHX. 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% | +$905.00 |
| $67.19 | -77.9% | +$905.00 |
| $134.36 | -55.8% | +$905.00 |
| $201.54 | -33.7% | +$905.00 |
| $268.72 | -11.6% | +$905.00 |
| $335.90 | +10.6% | -$595.00 |
| $403.07 | +32.7% | -$595.00 |
| $470.25 | +54.8% | -$595.00 |
| $537.43 | +76.9% | -$595.00 |
| $604.61 | +99.0% | -$595.00 |
When traders use bear put spread on LHX
Bear put spreads on LHX reduce the cost of a bearish LHX stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
LHX thesis for this bear put spread
The market-implied 1-standard-deviation range for LHX extends from approximately $278.64 on the downside to $329.02 on the upside. A LHX bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LHX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LHX IV rank near 55.00% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on LHX should anchor more to the directional view and the expected-move geometry. As a Industrials name, LHX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LHX-specific events.
LHX 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. LHX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LHX alongside the broader basket even when LHX-specific fundamentals are unchanged. Long-premium structures like a bear put spread on LHX 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 LHX chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on LHX?
- A bear put spread on LHX is the bear put spread strategy applied to LHX (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 LHX stock trading near $303.83, the strikes shown on this page are snapped to the nearest listed LHX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LHX 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 LHX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 28.92%), the computed maximum profit is $905.00 per contract and the computed maximum loss is -$595.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LHX bear put spread?
- The breakeven for the LHX bear put spread priced on this page is roughly $299.05 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 LHX market-implied 1-standard-deviation expected move is approximately 8.29%; 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 LHX?
- Bear put spreads on LHX reduce the cost of a bearish LHX 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 LHX implied volatility affect this bear put spread?
- LHX ATM IV is at 28.92% with IV rank near 55.00%, 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.