How are O 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 O bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 14.90%), the computed maximum profit is $182.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a O bear put spread?

The breakeven for the O bear put spread priced on this page is roughly $61.83 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 O market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

O ATM IV is at 14.90% with IV rank near 4.26%, 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.

O Bear Put Spread Strategy

O (Realty Income Corporation), in the Real Estate sector, (REIT - Retail industry), listed on NYSE.

Known as "The Monthly Dividend Company," Realty Income is an S&P 500 corporation committed to delivering reliable monthly income to its shareholders. Operating as a Real Estate Investment Trust (REIT), its monthly payouts are generated from the consistent cash flow of over 6,500 commercial properties, which are leased to various businesses under long-term contracts. With a remarkable 52-year operational history, the firm (NYSE: O) has announced 608 uninterrupted monthly dividends for its common stock and has increased its dividend payout 109 times since going public in 1994. It also holds a distinguished position within the S&P 500 Dividend Aristocrats index. For additional details, please visit the company's official website at www.realtyincome.com.

O (Realty Income Corporation) trades in the Real Estate sector, specifically REIT - Retail, with a market capitalization of approximately $58.36B, a trailing P/E of 44.18, a beta of 0.72 versus the broader market, a 52-week range of 55.86-67.94, average daily share volume of 5.7M, a public-listing history dating back to 1994, approximately 544 full-time employees. These structural characteristics shape how O stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.72 places O roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 44.18 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. O 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 O?

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.

O snapshot

As of August 14, 2026, spot at $62.84, ATM IV 14.90%, IV rank 4.26%, expected move 4.27%. The bear put spread on O 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 O specifically: O IV at 14.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a O bear put spread, with a market-implied 1-standard-deviation move of approximately 4.27% (roughly $2.68 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 O expiries trade a higher absolute premium for lower per-day decay. Position sizing on O should anchor to the underlying notional of $62.84 per share and to the trader's directional view on O stock.

O bear put spread setup

The O 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 O at $62.84 on that close, the first option leg uses a $62.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed O 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 O shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$62.50	$1.00
Sell 1	Put	$60.00	$0.33

O bear put spread risk and reward

Net Premium / Debit: -$67.50
Max Profit (per contract): $182.50
Max Loss (per contract): -$67.50
Breakeven(s): $61.83
Risk / Reward Ratio: 2.704

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.

O bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on O. 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%	+$182.50
$13.90	-77.9%	+$182.50
$27.80	-55.8%	+$182.50
$41.69	-33.7%	+$182.50
$55.58	-11.5%	+$182.50
$69.48	+10.6%	-$67.50
$83.37	+32.7%	-$67.50
$97.26	+54.8%	-$67.50
$111.16	+76.9%	-$67.50
$125.05	+99.0%	-$67.50

When traders use bear put spread on O

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

O thesis for this bear put spread

The market-implied 1-standard-deviation range for O extends from approximately $60.16 on the downside to $65.52 on the upside. A O bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on O, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current O IV rank near 4.26% 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 O at 14.90%. As a Real Estate name, O options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to O-specific events.

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

Frequently asked questions

What is a bear put spread on O?: A bear put spread on O is the bear put spread strategy applied to O (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 O stock at $62.84 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed O chain strike and the premiums come straight from that session's bid/ask midpoint.
How are O 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 O bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 14.90%), the computed maximum profit is $182.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a O bear put spread?: The breakeven for the O bear put spread priced on this page is roughly $61.83 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 O market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.27%; 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 O?: Bear put spreads on O reduce the cost of a bearish O 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 O implied volatility affect this bear put spread?: O ATM IV is at 14.90% with IV rank near 4.26%, 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.