MRDN Bear Put Spread Strategy
MRDN (Meridian Holdings Inc.), in the Technology sector, (Electronic Gaming & Multimedia industry), listed on NASDAQ.
Meridian Holdings, Inc. engages in offering casino, sportsbook, and competition products. Its brands include R Kings Competitions, MexPlay, and GM-AG. It operates through the Business-to-business (B2B) and Business-to-consumer (B2C) segments. The B2B segment is involved in the charges of usage of its software and royalties charged on the use of third-party gaming content. The B2C segment focuses on the charges to enter prize competitions in the United Kingdom. The company was founded by Weiting Feng and Anthony Brian Goodman on June 4, 2008 and is headquartered in Las Vegas, NV.
MRDN (Meridian Holdings Inc.) trades in the Technology sector, specifically Electronic Gaming & Multimedia, with a market capitalization of approximately $137.2M, a beta of 1.41 versus the broader market, a 52-week range of 5.796-23.76, average daily share volume of 41K, a public-listing history dating back to 2009, approximately 1K full-time employees. These structural characteristics shape how MRDN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates MRDN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bear put spread on MRDN?
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 MRDN snapshot
As of May 15, 2026, spot at $10.92, ATM IV 247.30%, expected move 70.90%. The bear put spread on MRDN 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 MRDN specifically: IV rank is unavailable in the current snapshot, so regime-based timing for MRDN is inferred from ATM IV at 247.30% alone, with a market-implied 1-standard-deviation move of approximately 70.90% (roughly $7.74 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 MRDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on MRDN should anchor to the underlying notional of $10.92 per share and to the trader's directional view on MRDN stock.
MRDN bear put spread setup
The MRDN 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 MRDN near $10.92, the first option leg uses a $10.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MRDN 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 MRDN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $10.92 | N/A |
| Sell 1 | Put | $10.37 | N/A |
MRDN bear put spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
MRDN bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on MRDN. 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.
When traders use bear put spread on MRDN
Bear put spreads on MRDN reduce the cost of a bearish MRDN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
MRDN thesis for this bear put spread
The market-implied 1-standard-deviation range for MRDN extends from approximately $3.18 on the downside to $18.66 on the upside. A MRDN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on MRDN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. As a Technology name, MRDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MRDN-specific events.
MRDN 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. MRDN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MRDN alongside the broader basket even when MRDN-specific fundamentals are unchanged. Long-premium structures like a bear put spread on MRDN 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 MRDN chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on MRDN?
- A bear put spread on MRDN is the bear put spread strategy applied to MRDN (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 MRDN stock trading near $10.92, the strikes shown on this page are snapped to the nearest listed MRDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MRDN 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 MRDN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 247.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MRDN bear put spread?
- The breakeven for the MRDN bear put spread priced on this page is no defined breakeven on the modeled curve 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 MRDN market-implied 1-standard-deviation expected move is approximately 70.90%; 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 MRDN?
- Bear put spreads on MRDN reduce the cost of a bearish MRDN 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 MRDN implied volatility affect this bear put spread?
- Current MRDN ATM IV is 247.30%; IV rank context is unavailable in the current snapshot.