How are MGM 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 MGM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 39.31%), the computed maximum profit is $125.00 per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MGM bear put spread?

The breakeven for the MGM bear put spread priced on this page is roughly $36.25 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 MGM market-implied 1-standard-deviation expected move is approximately 11.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

MGM ATM IV is at 39.31% with IV rank near 33.76%, 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.

MGM Bear Put Spread Strategy

MGM (MGM Resorts International), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NYSE.

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. As of February 17, 2021, its portfolio consisted of 29 hotel and destination gaming offerings. The company also owns and operates Las Vegas Strip Resorts and Fallen Oak golf course.

MGM (MGM Resorts International) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $9.57B, a trailing P/E of 52.45, a beta of 1.29 versus the broader market, a 52-week range of 29.19-40.94, average daily share volume of 4.7M, a public-listing history dating back to 1988, approximately 78K full-time employees. These structural characteristics shape how MGM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.29 places MGM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 52.45 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 MGM?

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 MGM snapshot

As of May 15, 2026, spot at $36.91, ATM IV 39.31%, IV rank 33.76%, expected move 11.27%. The bear put spread on MGM 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 MGM specifically: MGM IV at 39.31% 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 11.27% (roughly $4.16 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 MGM expiries trade a higher absolute premium for lower per-day decay. Position sizing on MGM should anchor to the underlying notional of $36.91 per share and to the trader's directional view on MGM stock.

MGM bear put spread setup

The MGM 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 MGM near $36.91, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MGM 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 MGM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$37.00	$1.58
Sell 1	Put	$35.00	$0.83

MGM bear put spread risk and reward

Net Premium / Debit: -$75.00
Max Profit (per contract): $125.00
Max Loss (per contract): -$75.00
Breakeven(s): $36.25
Risk / Reward Ratio: 1.667

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.

MGM bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on MGM. 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%	+$125.00
$8.17	-77.9%	+$125.00
$16.33	-55.8%	+$125.00
$24.49	-33.7%	+$125.00
$32.65	-11.5%	+$125.00
$40.81	+10.6%	-$75.00
$48.97	+32.7%	-$75.00
$57.13	+54.8%	-$75.00
$65.29	+76.9%	-$75.00
$73.45	+99.0%	-$75.00

When traders use bear put spread on MGM

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

MGM thesis for this bear put spread

The market-implied 1-standard-deviation range for MGM extends from approximately $32.75 on the downside to $41.07 on the upside. A MGM bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on MGM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current MGM IV rank near 33.76% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on MGM should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MGM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MGM-specific events.

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

Frequently asked questions

What is a bear put spread on MGM?: A bear put spread on MGM is the bear put spread strategy applied to MGM (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 MGM stock trading near $36.91, the strikes shown on this page are snapped to the nearest listed MGM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MGM 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 MGM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 39.31%), the computed maximum profit is $125.00 per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MGM bear put spread?: The breakeven for the MGM bear put spread priced on this page is roughly $36.25 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 MGM market-implied 1-standard-deviation expected move is approximately 11.27%; 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 MGM?: Bear put spreads on MGM reduce the cost of a bearish MGM 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 MGM implied volatility affect this bear put spread?: MGM ATM IV is at 39.31% with IV rank near 33.76%, 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.