NDSN Bear Put Spread Strategy
NDSN (Nordson Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, medical components, and other fluids. The Industrial Precision Solutions segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems; components and systems for thermoplastic and biopolymer melt stream; fluid components, such as nozzles, pumps, and filters; smart components that measure and control the flow, quantity and location of dispensed fluid; control systems; and product assembly solutions. It also offers automated and manual dispensing products and systems for cold materials, container coating, liquid finishing, and powder coating, as well as ultraviolet equipment. The Medical and Fluid Solutions segment offers precision manual and semi-automated dispensers, plastic molded syringes, cartridges, tips, and fluid connection components; interventional solutions for engineered shafts and interventional delivery systems, medical tubing, balloons, balloon inflators, nitinol devices, cardiovascular cannula, and biomaterial delivery; medical fluid components; and microplegia myocardial protection devices and related consumables. The Advanced Technology Solutions segment provides automated dispensing systems for high-speed, precise application of various attachment, protection, and coating fluids, and related gas plasma treatment systems; destructive and non-destructive testing technologies, such as bond testers and automated optical, acoustic microscopy, and x-ray inspection systems used in the semiconductor and printed circuit board industries; and precision measurement and control technologies. The company markets its products through direct sales force, distributors, and sales representatives.
NDSN (Nordson Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $16.80B, a trailing P/E of 31.85, a beta of 0.98 versus the broader market, a 52-week range of 207.08-307.74, average daily share volume of 395K, a public-listing history dating back to 1980, approximately 8K full-time employees. These structural characteristics shape how NDSN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places NDSN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NDSN 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 NDSN?
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 NDSN snapshot
As of June 30, 2026, spot at $302.07, ATM IV 26.20%, IV rank 34.39%, expected move 7.51%. The bear put spread on NDSN 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 NDSN specifically: NDSN IV at 26.20% 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 7.51% (roughly $22.69 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 NDSN expiries trade a higher absolute premium for lower per-day decay. Position sizing on NDSN should anchor to the underlying notional of $302.07 per share and to the trader's directional view on NDSN stock.
NDSN bear put spread setup
The NDSN 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 NDSN near $302.07, the first option leg uses a $300.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NDSN 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 NDSN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $300.00 | $5.30 |
| Sell 1 | Put | $290.00 | $2.55 |
NDSN bear put spread risk and reward
- Net Premium / Debit
- -$275.00
- Max Profit (per contract)
- $725.00
- Max Loss (per contract)
- -$275.00
- Breakeven(s)
- $297.25
- Risk / Reward Ratio
- 2.636
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.
NDSN bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on NDSN. 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% | +$725.00 |
| $66.80 | -77.9% | +$725.00 |
| $133.59 | -55.8% | +$725.00 |
| $200.37 | -33.7% | +$725.00 |
| $267.16 | -11.6% | +$725.00 |
| $333.95 | +10.6% | -$275.00 |
| $400.74 | +32.7% | -$275.00 |
| $467.53 | +54.8% | -$275.00 |
| $534.32 | +76.9% | -$275.00 |
| $601.10 | +99.0% | -$275.00 |
When traders use bear put spread on NDSN
Bear put spreads on NDSN reduce the cost of a bearish NDSN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
NDSN thesis for this bear put spread
The market-implied 1-standard-deviation range for NDSN extends from approximately $279.38 on the downside to $324.76 on the upside. A NDSN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on NDSN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current NDSN IV rank near 34.39% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on NDSN should anchor more to the directional view and the expected-move geometry. As a Industrials name, NDSN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NDSN-specific events.
NDSN 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. NDSN positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NDSN alongside the broader basket even when NDSN-specific fundamentals are unchanged. Long-premium structures like a bear put spread on NDSN 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 NDSN chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on NDSN?
- A bear put spread on NDSN is the bear put spread strategy applied to NDSN (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 NDSN stock trading near $302.07, the strikes shown on this page are snapped to the nearest listed NDSN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NDSN 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 NDSN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 26.20%), the computed maximum profit is $725.00 per contract and the computed maximum loss is -$275.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NDSN bear put spread?
- The breakeven for the NDSN bear put spread priced on this page is roughly $297.25 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 NDSN market-implied 1-standard-deviation expected move is approximately 7.51%; 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 NDSN?
- Bear put spreads on NDSN reduce the cost of a bearish NDSN 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 NDSN implied volatility affect this bear put spread?
- NDSN ATM IV is at 26.20% with IV rank near 34.39%, 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.