How are LRCX 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 LRCX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 64.61%), the computed maximum profit is $802.50 per contract and the computed maximum loss is -$697.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LRCX bear put spread?

The breakeven for the LRCX bear put spread priced on this page is roughly $278.03 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 LRCX market-implied 1-standard-deviation expected move is approximately 18.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

LRCX ATM IV is at 64.61% with IV rank near 73.71%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

LRCX Bear Put Spread Strategy

LRCX (Lam Research Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products. It also provides SPEED gapfill high-density plasma chemical vapor deposition products; and Striker single-wafer atomic layer deposition products for dielectric film solutions. In addition, the company offers Flex for dielectric etch applications; Kiyo for conductor etch applications; Syndion for through-silicon via etch applications; and Versys metal products for metal etch processes. Further, it provides Coronus bevel clean products to enhance die yield; Da Vinci, DV-Prime, EOS, and SP series products to address various wafer cleaning applications; and Metryx mass metrology systems for high precision in-line mass measurement in semiconductor wafer manufacturing. The company sells its products and services to semiconductors industry in the United States, China, Europe, Japan, Korea, Southeast Asia, Taiwan, and internationally.

LRCX (Lam Research Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $369.47B, a trailing P/E of 55.04, a beta of 1.82 versus the broader market, a 52-week range of 79.49-300, average daily share volume of 10.0M, a public-listing history dating back to 1984, approximately 19K full-time employees. These structural characteristics shape how LRCX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.82 indicates LRCX 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 55.04 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. LRCX 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 LRCX?

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 LRCX snapshot

As of May 15, 2026, spot at $285.73, ATM IV 64.61%, IV rank 73.71%, expected move 18.52%. The bear put spread on LRCX 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 LRCX specifically: LRCX IV at 64.61% is rich versus its 1-year range, which makes a premium-buying LRCX bear put spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 18.52% (roughly $52.93 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 LRCX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LRCX should anchor to the underlying notional of $285.73 per share and to the trader's directional view on LRCX stock.

LRCX bear put spread setup

The LRCX 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 LRCX near $285.73, the first option leg uses a $285.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LRCX 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 LRCX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$285.00	$19.60
Sell 1	Put	$270.00	$12.63

LRCX bear put spread risk and reward

Net Premium / Debit: -$697.50
Max Profit (per contract): $802.50
Max Loss (per contract): -$697.50
Breakeven(s): $278.03
Risk / Reward Ratio: 1.151

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.

LRCX bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on LRCX. 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%	+$802.50
$63.19	-77.9%	+$802.50
$126.36	-55.8%	+$802.50
$189.54	-33.7%	+$802.50
$252.71	-11.6%	+$802.50
$315.89	+10.6%	-$697.50
$379.06	+32.7%	-$697.50
$442.24	+54.8%	-$697.50
$505.41	+76.9%	-$697.50
$568.59	+99.0%	-$697.50

When traders use bear put spread on LRCX

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

LRCX thesis for this bear put spread

The market-implied 1-standard-deviation range for LRCX extends from approximately $232.80 on the downside to $338.66 on the upside. A LRCX bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LRCX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LRCX IV rank near 73.71% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on LRCX at 64.61%. As a Technology name, LRCX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LRCX-specific events.

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

Frequently asked questions

What is a bear put spread on LRCX?: A bear put spread on LRCX is the bear put spread strategy applied to LRCX (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 LRCX stock trading near $285.73, the strikes shown on this page are snapped to the nearest listed LRCX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LRCX 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 LRCX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 64.61%), the computed maximum profit is $802.50 per contract and the computed maximum loss is -$697.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LRCX bear put spread?: The breakeven for the LRCX bear put spread priced on this page is roughly $278.03 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 LRCX market-implied 1-standard-deviation expected move is approximately 18.52%; 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 LRCX?: Bear put spreads on LRCX reduce the cost of a bearish LRCX 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 LRCX implied volatility affect this bear put spread?: LRCX ATM IV is at 64.61% with IV rank near 73.71%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.