How are NEM 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 NEM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 50.36%), the computed maximum profit is $251.50 per contract and the computed maximum loss is -$248.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NEM bear put spread?

The breakeven for the NEM bear put spread priced on this page is roughly $92.52 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 NEM market-implied 1-standard-deviation expected move is approximately 14.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

NEM ATM IV is at 50.36% with IV rank near 63.23%, 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.

NEM Bear Put Spread Strategy

NEM (Newmont Corporation), in the Basic Materials sector, (Gold industry), listed on NYSE.

Newmont Corporation is primarily involved in the mining and exploration of gold resources. Additionally, the company undertakes prospecting for other base and precious metals, including copper, silver, zinc, and lead. Its operations and assets are geographically widespread, located across various countries such as the United States, Canada, Mexico, the Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. As of the close of 2021 (December 31st), Newmont reported substantial proven and probable gold reserves, totaling 92.8 million ounces, and managed a vast land portfolio covering 62,800 square kilometers. Founded in 1916, the company's corporate headquarters are situated in Denver, Colorado.

NEM (Newmont Corporation) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $102.62B, a trailing P/E of 12.33, a beta of 0.46 versus the broader market, a 52-week range of 55.37-134.88, average daily share volume of 8.2M, a public-listing history dating back to 1980, approximately 44K full-time employees. These structural characteristics shape how NEM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.46 indicates NEM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NEM 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 NEM?

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 NEM snapshot

As of June 29, 2026, spot at $94.58, ATM IV 50.36%, IV rank 63.23%, expected move 14.44%. The bear put spread on NEM 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 32-day expiry.

Why this bear put spread structure on NEM specifically: NEM IV at 50.36% 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 14.44% (roughly $13.66 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEM should anchor to the underlying notional of $94.58 per share and to the trader's directional view on NEM stock.

NEM bear put spread setup

The NEM 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 NEM near $94.58, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEM chain at a 32-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 NEM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$95.00	$5.48
Sell 1	Put	$90.00	$2.99

NEM bear put spread risk and reward

Net Premium / Debit: -$248.50
Max Profit (per contract): $251.50
Max Loss (per contract): -$248.50
Breakeven(s): $92.52
Risk / Reward Ratio: 1.012

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.

NEM bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on NEM. 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%	+$251.50
$20.92	-77.9%	+$251.50
$41.83	-55.8%	+$251.50
$62.74	-33.7%	+$251.50
$83.65	-11.6%	+$251.50
$104.57	+10.6%	-$248.50
$125.48	+32.7%	-$248.50
$146.39	+54.8%	-$248.50
$167.30	+76.9%	-$248.50
$188.21	+99.0%	-$248.50

When traders use bear put spread on NEM

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

NEM thesis for this bear put spread

The market-implied 1-standard-deviation range for NEM extends from approximately $80.92 on the downside to $108.24 on the upside. A NEM bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on NEM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current NEM IV rank near 63.23% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on NEM should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, NEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEM-specific events.

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

Frequently asked questions

What is a bear put spread on NEM?: A bear put spread on NEM is the bear put spread strategy applied to NEM (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 NEM stock trading near $94.58, the strikes shown on this page are snapped to the nearest listed NEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NEM 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 NEM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 50.36%), the computed maximum profit is $251.50 per contract and the computed maximum loss is -$248.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NEM bear put spread?: The breakeven for the NEM bear put spread priced on this page is roughly $92.52 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 NEM market-implied 1-standard-deviation expected move is approximately 14.44%; 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 NEM?: Bear put spreads on NEM reduce the cost of a bearish NEM 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 NEM implied volatility affect this bear put spread?: NEM ATM IV is at 50.36% with IV rank near 63.23%, 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.