How are MLI 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 MLI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is $631.00 per contract and the computed maximum loss is -$369.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MLI bear put spread?

The breakeven for the MLI bear put spread priced on this page is roughly $121.31 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 MLI market-implied 1-standard-deviation expected move is approximately 9.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

MLI ATM IV is at 31.90% with IV rank near 69.67%, 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.

MLI Bear Put Spread Strategy

MLI (Mueller Industries, Inc.), in the Industrials sector, (Manufacturing - Metal Fabrication industry), listed on NYSE.

Mueller Industries, Inc., established in 1917 and based in Collierville, Tennessee, is a global manufacturer and distributor of various products crafted from copper, brass, aluminum, and plastic. The company operates internationally, with a presence in the United States, the United Kingdom, Canada, South Korea, the Middle East, China, and Mexico. Its business is divided into three key segments: Piping Systems, Industrial Metals, and Climate. The Piping Systems segment offers a comprehensive range of products including copper tubing, fittings, line sets, and pipe nipples. It also provides PEX plumbing and radiant heating systems, as well as plastic injection tooling. Additionally, this segment resells items such as steel pipes, brass and plastic plumbing valves, malleable iron fittings, faucets, and other plumbing specialties, alongside supplying water tubes.

MLI (Mueller Industries, Inc.) trades in the Industrials sector, specifically Manufacturing - Metal Fabrication, with a market capitalization of approximately $14.18B, a trailing P/E of 16.52, a beta of 1.11 versus the broader market, a 52-week range of 78.57-141.9, average daily share volume of 678K, a public-listing history dating back to 1991, approximately 5K full-time employees. These structural characteristics shape how MLI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.11 places MLI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MLI 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 MLI?

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 MLI snapshot

As of June 30, 2026, spot at $122.62, ATM IV 31.90%, IV rank 69.67%, expected move 9.15%. The bear put spread on MLI 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 17-day expiry.

Why this bear put spread structure on MLI specifically: MLI IV at 31.90% 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 9.15% (roughly $11.21 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MLI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MLI should anchor to the underlying notional of $122.62 per share and to the trader's directional view on MLI stock.

MLI bear put spread setup

The MLI 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 MLI near $122.62, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MLI chain at a 17-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 MLI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$125.00	$4.45
Sell 1	Put	$115.00	$0.76

MLI bear put spread risk and reward

Net Premium / Debit: -$369.00
Max Profit (per contract): $631.00
Max Loss (per contract): -$369.00
Breakeven(s): $121.31
Risk / Reward Ratio: 1.710

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.

MLI bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on MLI. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$631.00
$27.12	-77.9%	+$631.00
$54.23	-55.8%	+$631.00
$81.34	-33.7%	+$631.00
$108.45	-11.6%	+$631.00
$135.56	+10.6%	-$369.00
$162.68	+32.7%	-$369.00
$189.79	+54.8%	-$369.00
$216.90	+76.9%	-$369.00
$244.01	+99.0%	-$369.00

When traders use bear put spread on MLI

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

MLI thesis for this bear put spread

The market-implied 1-standard-deviation range for MLI extends from approximately $111.41 on the downside to $133.83 on the upside. A MLI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on MLI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current MLI IV rank near 69.67% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on MLI should anchor more to the directional view and the expected-move geometry. As a Industrials name, MLI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MLI-specific events.

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

Frequently asked questions

What is a bear put spread on MLI?: A bear put spread on MLI is the bear put spread strategy applied to MLI (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 MLI stock trading near $122.62, the strikes shown on this page are snapped to the nearest listed MLI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MLI 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 MLI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is $631.00 per contract and the computed maximum loss is -$369.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MLI bear put spread?: The breakeven for the MLI bear put spread priced on this page is roughly $121.31 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 MLI market-implied 1-standard-deviation expected move is approximately 9.15%; 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 MLI?: Bear put spreads on MLI reduce the cost of a bearish MLI 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 MLI implied volatility affect this bear put spread?: MLI ATM IV is at 31.90% with IV rank near 69.67%, 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.