MOD Bear Put Spread Strategy
MOD (Modine Manufacturing Company), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer (OEM) vehicular applications. It operates through Climate Solutions and Performance Technologies segments. The company offers gas-fired, hydronic, electric, and oil-fired unit heaters; indoor and outdoor duct furnaces; infrared units; perimeter heating products, such as commercial fin-tube radiation, cabinet unit heaters, and convectors; roof-mounted direct- and indirect-fired makeup air units; unit ventilators; single packaged vertical units; precision air conditioning units for data center applications; air handler units; fan walls; chillers; ceiling cassettes; hybrid fan coils; and condensers and condensing units. It also provides microchannel, heat recovery, round tube plate fin, and motor and generator cooling coils; evaporator unit, fluid, transformer oil, gas, air blast, and dry and brine coolers, as well as remote condensers; and coatings to protect against corrosion. In addition, the company offers powertrain cooling products, including engine cooling modules, radiators, charge air coolers, condensers, oil coolers, fan shrouds, and surge tanks; on-engine cooling products comprising exhaust gas recirculation, engine oil, fuel, charge air, and intake air coolers; auxiliary cooling products, such as transmission and retarder oil coolers, and power steering coolers; and complete battery thermal management systems and electronics cooling packages. It serves heating, ventilation, and cooling OEMs; construction architects and contractors; wholesalers of heating equipment; automobile, truck, bus, and specialty vehicle OEMs; agricultural, industrial, and construction equipment OEMs; and commercial and industrial equipment OEMs.
MOD (Modine Manufacturing Company) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $14.72B, a trailing P/E of 150.73, a beta of 1.66 versus the broader market, a 52-week range of 86.48-287.3, average daily share volume of 1.0M, a public-listing history dating back to 1982, approximately 11K full-time employees. These structural characteristics shape how MOD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.66 indicates MOD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 150.73 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 MOD?
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 MOD snapshot
As of May 15, 2026, spot at $272.77, ATM IV 91.00%, IV rank 89.05%, expected move 26.09%. The bear put spread on MOD 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 MOD specifically: MOD IV at 91.00% is rich versus its 1-year range, which makes a premium-buying MOD bear put spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 26.09% (roughly $71.16 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 MOD expiries trade a higher absolute premium for lower per-day decay. Position sizing on MOD should anchor to the underlying notional of $272.77 per share and to the trader's directional view on MOD stock.
MOD bear put spread setup
The MOD 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 MOD near $272.77, the first option leg uses a $270.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MOD 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 MOD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $270.00 | $27.65 |
| Sell 1 | Put | $260.00 | $22.60 |
MOD bear put spread risk and reward
- Net Premium / Debit
- -$505.00
- Max Profit (per contract)
- $495.00
- Max Loss (per contract)
- -$505.00
- Breakeven(s)
- $264.95
- Risk / Reward Ratio
- 0.980
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.
MOD bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on MOD. 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% | +$495.00 |
| $60.32 | -77.9% | +$495.00 |
| $120.63 | -55.8% | +$495.00 |
| $180.94 | -33.7% | +$495.00 |
| $241.25 | -11.6% | +$495.00 |
| $301.56 | +10.6% | -$505.00 |
| $361.87 | +32.7% | -$505.00 |
| $422.18 | +54.8% | -$505.00 |
| $482.49 | +76.9% | -$505.00 |
| $542.80 | +99.0% | -$505.00 |
When traders use bear put spread on MOD
Bear put spreads on MOD reduce the cost of a bearish MOD stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
MOD thesis for this bear put spread
The market-implied 1-standard-deviation range for MOD extends from approximately $201.61 on the downside to $343.93 on the upside. A MOD bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on MOD, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current MOD IV rank near 89.05% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MOD at 91.00%. As a Consumer Cyclical name, MOD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MOD-specific events.
MOD 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. MOD positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MOD alongside the broader basket even when MOD-specific fundamentals are unchanged. Long-premium structures like a bear put spread on MOD 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 MOD chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on MOD?
- A bear put spread on MOD is the bear put spread strategy applied to MOD (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 MOD stock trading near $272.77, the strikes shown on this page are snapped to the nearest listed MOD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MOD 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 MOD bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 91.00%), the computed maximum profit is $495.00 per contract and the computed maximum loss is -$505.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MOD bear put spread?
- The breakeven for the MOD bear put spread priced on this page is roughly $264.95 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 MOD market-implied 1-standard-deviation expected move is approximately 26.09%; 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 MOD?
- Bear put spreads on MOD reduce the cost of a bearish MOD 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 MOD implied volatility affect this bear put spread?
- MOD ATM IV is at 91.00% with IV rank near 89.05%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.