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 end-of-day chain at a 30-day expiry (ATM IV 98.64%), the computed maximum profit is $2,330.00 per contract and the computed maximum loss is -$2,670.00 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 $983.30 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 LITE market-implied 1-standard-deviation expected move is approximately 28.28%; 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 98.64% with IV rank near 52.17%, 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. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates in two segments, Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; vertical-cavity surface-emitting lasers; directly modulated and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets.

LITE (Lumentum Holdings Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $80.16B, a trailing P/E of 167.47, a beta of 1.53 versus the broader market, a 52-week range of 71.04-1085.68, average daily share volume of 6.4M, a public-listing history dating back to 2015, approximately 7K 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 1.53 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. The trailing P/E of 167.47 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

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.

Current LITE snapshot

As of May 14, 2026, spot at $1,009.10, ATM IV 98.64%, IV rank 52.17%, expected move 28.28%. The bear put spread on LITE 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 LITE specifically: LITE IV at 98.64% 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 28.28% (roughly $285.38 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 $1,009.10 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LITE near $1,009.10, the first option leg uses a $1,010.00 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	$1,010.00	$119.50
Sell 1	Put	$960.00	$92.80

LITE bear put spread risk and reward

Net Premium / Debit: -$2,670.00
Max Profit (per contract): $2,330.00
Max Loss (per contract): -$2,670.00
Breakeven(s): $983.30
Risk / Reward Ratio: 0.873

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$2,330.00
$223.13	-77.9%	+$2,330.00
$446.24	-55.8%	+$2,330.00
$669.36	-33.7%	+$2,330.00
$892.48	-11.6%	+$2,330.00
$1,115.59	+10.6%	-$2,670.00
$1,338.71	+32.7%	-$2,670.00
$1,561.83	+54.8%	-$2,670.00
$1,784.94	+76.9%	-$2,670.00
$2,008.06	+99.0%	-$2,670.00

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 $723.72 on the downside to $1,294.48 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 52.17% 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 trading near $1,009.10, the strikes shown on this page are snapped to the nearest listed LITE chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 98.64%), the computed maximum profit is $2,330.00 per contract and the computed maximum loss is -$2,670.00 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 $983.30 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 LITE market-implied 1-standard-deviation expected move is approximately 28.28%; 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 98.64% with IV rank near 52.17%, 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.