MNDY Bear Put Spread Strategy
MNDY (monday.com Ltd.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
monday.com Ltd., along with its affiliated entities, designs and provides software solutions for a global market, spanning the United States, Europe, the Middle East, Africa, and other international regions. Its flagship offering is Work OS, an intuitive cloud-native visual work operating system constructed from configurable modules. This platform empowers users to assemble bespoke software applications and effective work management tools. The company further supplies dedicated product solutions catering to various functions, including marketing, customer relationship management (CRM), project coordination, and software engineering. Additionally, monday.com delivers comprehensive business development, presales, and customer support services. Its client base is broad, encompassing diverse organizations, educational and governmental institutions, and specific business divisions within larger enterprises.
MNDY (monday.com Ltd.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.63B, a trailing P/E of 34.58, a beta of 1.23 versus the broader market, a 52-week range of 57.5-220.8, average daily share volume of 1.7M, a public-listing history dating back to 2021, approximately 3K full-time employees. These structural characteristics shape how MNDY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places MNDY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bear put spread on MNDY?
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.
MNDY snapshot
As of August 14, 2026, spot at $88.19, ATM IV 62.40%, IV rank 14.59%, expected move 17.89%. The bear put spread on MNDY 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 35-day expiry.
Why this bear put spread structure on MNDY specifically: MNDY IV at 62.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a MNDY bear put spread, with a market-implied 1-standard-deviation move of approximately 17.89% (roughly $15.78 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MNDY expiries trade a higher absolute premium for lower per-day decay. Position sizing on MNDY should anchor to the underlying notional of $88.19 per share and to the trader's directional view on MNDY stock.
MNDY bear put spread setup
The MNDY 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 MNDY at $88.19 on that close, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MNDY chain at a 35-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 MNDY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $90.00 | $7.80 |
| Sell 1 | Put | $85.00 | $5.15 |
MNDY bear put spread risk and reward
- Net Premium / Debit
- -$265.00
- Max Profit (per contract)
- $235.00
- Max Loss (per contract)
- -$265.00
- Breakeven(s)
- $87.35
- Risk / Reward Ratio
- 0.887
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.
MNDY bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on MNDY. 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% | +$235.00 |
| $19.51 | -77.9% | +$235.00 |
| $39.01 | -55.8% | +$235.00 |
| $58.50 | -33.7% | +$235.00 |
| $78.00 | -11.6% | +$235.00 |
| $97.50 | +10.6% | -$265.00 |
| $117.00 | +32.7% | -$265.00 |
| $136.50 | +54.8% | -$265.00 |
| $156.00 | +76.9% | -$265.00 |
| $175.49 | +99.0% | -$265.00 |
When traders use bear put spread on MNDY
Bear put spreads on MNDY reduce the cost of a bearish MNDY stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
MNDY thesis for this bear put spread
The market-implied 1-standard-deviation range for MNDY extends from approximately $72.41 on the downside to $103.97 on the upside. A MNDY bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on MNDY, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current MNDY IV rank near 14.59% 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 MNDY at 62.40%. As a Technology name, MNDY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MNDY-specific events.
MNDY 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. MNDY positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MNDY alongside the broader basket even when MNDY-specific fundamentals are unchanged. Long-premium structures like a bear put spread on MNDY 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 MNDY chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on MNDY?
- A bear put spread on MNDY is the bear put spread strategy applied to MNDY (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 MNDY stock at $88.19 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MNDY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MNDY 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 MNDY bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 62.40%), the computed maximum profit is $235.00 per contract and the computed maximum loss is -$265.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MNDY bear put spread?
- The breakeven for the MNDY bear put spread priced on this page is roughly $87.35 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 MNDY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.89%; 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 MNDY?
- Bear put spreads on MNDY reduce the cost of a bearish MNDY 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 MNDY implied volatility affect this bear put spread?
- MNDY ATM IV is at 62.40% with IV rank near 14.59%, 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.