LYEL Bear Put Spread Strategy
LYEL (Lyell Immunopharma, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Lyell Immunopharma, Inc., a clinical-stage cell therapy company, develops chimeric antigen receptor (CAR) T-cell product candidates for patients with hematologic malignancies and solid tumors. The company’s lead product candidate include rondecabtagene autoleucel, an autologous dual-targeting CD19/CD20 CAR T-cell therapy in development, which is in pivotal PiNACLE trial in the 3L+ setting and in a Phase 1/2 clinical trial in the 2L setting, as well as a second pivotal trial, PiNACLE-H2H, which is a Phase 3 head-to-head CAR T cell therapy randomized controlled trial of ronde-cel for LBCL in the 2L setting for the treatment of large B-cell lymphoma; and LYL273, a GCC-targeted CAR T-cell product candidate enhanced with CD19 CAR expression and controlled cytokine release designed to improve CAR T-cell expansion, immune cell infiltration, and cancer cell killing in the hostile solid tumor microenvironment, which is in Phase 1 clinical trial for the treatment of refractory metastatic colorectal cancer. The company develops therapies using various approaches, such as c-Jun overexpression and NR4A3 gene knockout, to endow functional resistance to exhaustion; Epi-R to generate population of stem-like T cells with reduced exhaustion and improved proliferation and antitumor activity; and CD62L positive enrichment to generate CAR T cells with enhanced antitumor activity. Lyell Immunopharma, Inc. was incorporated in 2018 and is headquartered in South San Francisco, California.
LYEL (Lyell Immunopharma, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $341.8M, a beta of -0.07 versus the broader market, a 52-week range of 10.49-45, average daily share volume of 149K, a public-listing history dating back to 2021, approximately 161 full-time employees. These structural characteristics shape how LYEL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.07 indicates LYEL 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 LYEL?
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.
LYEL snapshot
As of August 14, 2026, spot at $13.87, ATM IV 152.40%, IV rank 34.19%, expected move 43.69%. The bear put spread on LYEL 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 7-day expiry.
Why this bear put spread structure on LYEL specifically: LYEL IV at 152.40% 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 43.69% (roughly $6.06 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LYEL expiries trade a higher absolute premium for lower per-day decay. Position sizing on LYEL should anchor to the underlying notional of $13.87 per share and to the trader's directional view on LYEL stock.
LYEL bear put spread setup
The LYEL 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 LYEL at $13.87 on that close, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LYEL chain at a 7-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 LYEL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $14.00 | $2.30 |
| Sell 1 | Put | $13.00 | $1.75 |
LYEL bear put spread risk and reward
- Net Premium / Debit
- -$55.00
- Max Profit (per contract)
- $45.00
- Max Loss (per contract)
- -$55.00
- Breakeven(s)
- $13.45
- Risk / Reward Ratio
- 0.818
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.
LYEL bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on LYEL. 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 | -99.9% | +$45.00 |
| $3.08 | -77.8% | +$45.00 |
| $6.14 | -55.7% | +$45.00 |
| $9.21 | -33.6% | +$45.00 |
| $12.27 | -11.5% | +$45.00 |
| $15.34 | +10.6% | -$55.00 |
| $18.40 | +32.7% | -$55.00 |
| $21.47 | +54.8% | -$55.00 |
| $24.54 | +76.9% | -$55.00 |
| $27.60 | +99.0% | -$55.00 |
When traders use bear put spread on LYEL
Bear put spreads on LYEL reduce the cost of a bearish LYEL stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
LYEL thesis for this bear put spread
The market-implied 1-standard-deviation range for LYEL extends from approximately $7.81 on the downside to $19.93 on the upside. A LYEL bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LYEL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LYEL IV rank near 34.19% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on LYEL should anchor more to the directional view and the expected-move geometry. As a Healthcare name, LYEL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LYEL-specific events.
LYEL 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. LYEL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LYEL alongside the broader basket even when LYEL-specific fundamentals are unchanged. Long-premium structures like a bear put spread on LYEL 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 LYEL chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on LYEL?
- A bear put spread on LYEL is the bear put spread strategy applied to LYEL (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 LYEL stock at $13.87 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LYEL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LYEL 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 LYEL bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 152.40%), the computed maximum profit is $45.00 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LYEL bear put spread?
- The breakeven for the LYEL bear put spread priced on this page is roughly $13.45 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 LYEL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 43.69%; 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 LYEL?
- Bear put spreads on LYEL reduce the cost of a bearish LYEL 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 LYEL implied volatility affect this bear put spread?
- LYEL ATM IV is at 152.40% with IV rank near 34.19%, 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.