LUNG Bear Put Spread Strategy
LUNG (Pulmonx Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Pulmonx Corporation, a medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. It offers Zephyr Endobronchial Valve, a solution for the treatment of bronchoscopic in adult patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. The company also provides StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. It serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.
LUNG (Pulmonx Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $56.2M, a beta of 0.18 versus the broader market, a 52-week range of 1.13-3.88, average daily share volume of 559K, a public-listing history dating back to 2020, approximately 291 full-time employees. These structural characteristics shape how LUNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.18 indicates LUNG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a bear put spread on LUNG?
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 LUNG snapshot
As of May 15, 2026, spot at $1.27, ATM IV 27.00%, IV rank 1.51%, expected move 7.74%. The bear put spread on LUNG 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 LUNG specifically: LUNG IV at 27.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a LUNG bear put spread, with a market-implied 1-standard-deviation move of approximately 7.74% (roughly $0.10 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 LUNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on LUNG should anchor to the underlying notional of $1.27 per share and to the trader's directional view on LUNG stock.
LUNG bear put spread setup
The LUNG 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 LUNG near $1.27, the first option leg uses a $1.27 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LUNG 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 LUNG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $1.27 | N/A |
| Sell 1 | Put | $1.21 | N/A |
LUNG bear put spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
LUNG bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on LUNG. 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.
When traders use bear put spread on LUNG
Bear put spreads on LUNG reduce the cost of a bearish LUNG stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
LUNG thesis for this bear put spread
The market-implied 1-standard-deviation range for LUNG extends from approximately $1.17 on the downside to $1.37 on the upside. A LUNG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LUNG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LUNG IV rank near 1.51% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on LUNG at 27.00%. As a Healthcare name, LUNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LUNG-specific events.
LUNG 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. LUNG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LUNG alongside the broader basket even when LUNG-specific fundamentals are unchanged. Long-premium structures like a bear put spread on LUNG 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 LUNG chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on LUNG?
- A bear put spread on LUNG is the bear put spread strategy applied to LUNG (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 LUNG stock trading near $1.27, the strikes shown on this page are snapped to the nearest listed LUNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LUNG 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 LUNG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 27.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LUNG bear put spread?
- The breakeven for the LUNG bear put spread priced on this page is no defined breakeven on the modeled curve 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 LUNG market-implied 1-standard-deviation expected move is approximately 7.74%; 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 LUNG?
- Bear put spreads on LUNG reduce the cost of a bearish LUNG 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 LUNG implied volatility affect this bear put spread?
- LUNG ATM IV is at 27.00% with IV rank near 1.51%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.