OHI Bear Put Spread Strategy
OHI (Omega Healthcare Investors, Inc.), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NYSE.
Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the US, as well as in the UK.
OHI (Omega Healthcare Investors, Inc.) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $14.29B, a trailing P/E of 22.56, a beta of 0.59 versus the broader market, a 52-week range of 35.7-49.14, average daily share volume of 2.0M, a public-listing history dating back to 1992, approximately 60 full-time employees. These structural characteristics shape how OHI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates OHI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OHI 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 OHI?
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 OHI snapshot
As of May 15, 2026, spot at $47.30, ATM IV 20.60%, IV rank 47.85%, expected move 5.91%. The bear put spread on OHI 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 OHI specifically: OHI IV at 20.60% 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 5.91% (roughly $2.79 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 OHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on OHI should anchor to the underlying notional of $47.30 per share and to the trader's directional view on OHI stock.
OHI bear put spread setup
The OHI 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 OHI near $47.30, the first option leg uses a $47.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OHI 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 OHI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $47.00 | $0.95 |
| Sell 1 | Put | $45.00 | $0.35 |
OHI bear put spread risk and reward
- Net Premium / Debit
- -$60.00
- Max Profit (per contract)
- $140.00
- Max Loss (per contract)
- -$60.00
- Breakeven(s)
- $46.40
- Risk / Reward Ratio
- 2.333
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.
OHI bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on OHI. 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% | +$140.00 |
| $10.47 | -77.9% | +$140.00 |
| $20.92 | -55.8% | +$140.00 |
| $31.38 | -33.7% | +$140.00 |
| $41.84 | -11.5% | +$140.00 |
| $52.30 | +10.6% | -$60.00 |
| $62.75 | +32.7% | -$60.00 |
| $73.21 | +54.8% | -$60.00 |
| $83.67 | +76.9% | -$60.00 |
| $94.12 | +99.0% | -$60.00 |
When traders use bear put spread on OHI
Bear put spreads on OHI reduce the cost of a bearish OHI stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
OHI thesis for this bear put spread
The market-implied 1-standard-deviation range for OHI extends from approximately $44.51 on the downside to $50.09 on the upside. A OHI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on OHI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current OHI IV rank near 47.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on OHI should anchor more to the directional view and the expected-move geometry. As a Real Estate name, OHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OHI-specific events.
OHI 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. OHI positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OHI alongside the broader basket even when OHI-specific fundamentals are unchanged. Long-premium structures like a bear put spread on OHI 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 OHI chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on OHI?
- A bear put spread on OHI is the bear put spread strategy applied to OHI (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 OHI stock trading near $47.30, the strikes shown on this page are snapped to the nearest listed OHI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OHI 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 OHI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 20.60%), the computed maximum profit is $140.00 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OHI bear put spread?
- The breakeven for the OHI bear put spread priced on this page is roughly $46.40 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 OHI market-implied 1-standard-deviation expected move is approximately 5.91%; 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 OHI?
- Bear put spreads on OHI reduce the cost of a bearish OHI 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 OHI implied volatility affect this bear put spread?
- OHI ATM IV is at 20.60% with IV rank near 47.85%, 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.