How are LITE 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 LITE bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 81.83%), the computed maximum profit is $2,325.00 per contract and the computed maximum loss is -$2,175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LITE bear put spread?

The breakeven for the LITE bear put spread priced on this page is roughly $898.25 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The LITE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 23.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LITE implied volatility affect this bear put spread?

LITE ATM IV is at 81.83% with IV rank near 33.19%, 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.

LITE Bear Put Spread Strategy

LITE (Lumentum Holdings Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.

Lumentum Holdings Inc., established in 2015 and headquartered in San Jose, California, is a global leader in optical and photonic product manufacturing. The company's reach extends across the Americas, Asia-Pacific, Europe, the Middle East, and Africa. Lumentum operates through two principal business units: Optical Communications (OpComms) and Commercial Lasers. The OpComms segment develops and supplies components, modules, and subsystems essential for transmitting video, audio, and data across high-capacity fiber optic networks. Its offerings encompass a wide range of products, including tunable transponders, transceivers, and transmitter modules, alongside various tunable lasers, receivers, and modulators. Furthermore, this segment provides critical transport products such as reconfigurable optical add/drop multiplexers (ROADMs), optical amplifiers, and optical channel monitors.

LITE (Lumentum Holdings Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $72.55B, a beta of 1.51 versus the broader market, a 52-week range of 111.2-1085.68, average daily share volume of 5.5M, a public-listing history dating back to 2015, approximately 11K full-time employees. These structural characteristics shape how LITE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.51 indicates LITE 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 LITE?

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.

LITE snapshot

As of August 14, 2026, spot at $918.74, ATM IV 81.83%, IV rank 33.19%, expected move 23.46%. The bear put spread on LITE below is built from the August 14, 2026 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 LITE specifically: LITE IV at 81.83% 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 23.46% (roughly $215.54 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 LITE expiries trade a higher absolute premium for lower per-day decay. Position sizing on LITE should anchor to the underlying notional of $918.74 per share and to the trader's directional view on LITE stock.

LITE bear put spread setup

The LITE bear put spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LITE at $918.74 on that close, the first option leg uses a $920.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LITE 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 LITE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$920.00	$82.35
Sell 1	Put	$875.00	$60.60

LITE bear put spread risk and reward

Net Premium / Debit: -$2,175.00
Max Profit (per contract): $2,325.00
Max Loss (per contract): -$2,175.00
Breakeven(s): $898.25
Risk / Reward Ratio: 1.069

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.

LITE bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on LITE. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$2,325.00
$203.15	-77.9%	+$2,325.00
$406.28	-55.8%	+$2,325.00
$609.42	-33.7%	+$2,325.00
$812.56	-11.6%	+$2,325.00
$1,015.70	+10.6%	-$2,175.00
$1,218.83	+32.7%	-$2,175.00
$1,421.97	+54.8%	-$2,175.00
$1,625.11	+76.9%	-$2,175.00
$1,828.25	+99.0%	-$2,175.00

When traders use bear put spread on LITE

Bear put spreads on LITE reduce the cost of a bearish LITE stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.

LITE thesis for this bear put spread

The market-implied 1-standard-deviation range for LITE extends from approximately $703.20 on the downside to $1,134.28 on the upside. A LITE bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LITE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LITE IV rank near 33.19% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on LITE should anchor more to the directional view and the expected-move geometry. As a Technology name, LITE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LITE-specific events.

LITE 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. LITE positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LITE alongside the broader basket even when LITE-specific fundamentals are unchanged. Long-premium structures like a bear put spread on LITE 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 LITE chain quotes before placing a trade.

Frequently asked questions

What is a bear put spread on LITE?: A bear put spread on LITE is the bear put spread strategy applied to LITE (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 LITE stock at $918.74 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LITE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are LITE 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 LITE bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 81.83%), the computed maximum profit is $2,325.00 per contract and the computed maximum loss is -$2,175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LITE bear put spread?: The breakeven for the LITE bear put spread priced on this page is roughly $898.25 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The LITE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 23.46%; 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 LITE?: Bear put spreads on LITE reduce the cost of a bearish LITE 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 LITE implied volatility affect this bear put spread?: LITE ATM IV is at 81.83% with IV rank near 33.19%, 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.