OKE Bear Put Spread Strategy
OKE (ONEOK, Inc.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
ONEOK, Inc., together with its subsidiaries, engages in gathering, processing, storage, and transportation of natural gas in the United States. It operates through Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments. The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions. It also gathers, treats, fractionates, and transports natural gas liquids (NGL), as well as stores, markets, and distributes NGL products. The company owns NGL gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming, and Colorado; terminal and storage facilities in Kansas, Missouri, Nebraska, Iowa, and Illinois; and NGL distribution and refined petroleum products pipelines in Kansas, Missouri, Nebraska, Iowa, Illinois, and Indiana, as well as owns and operates truck- and rail-loading, and -unloading facilities connected to NGL fractionation, storage, and pipeline assets. In addition, it operates regulated interstate and intrastate natural gas transmission pipelines and natural gas storage facilities.
OKE (ONEOK, Inc.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $55.94B, a trailing P/E of 15.85, a beta of 0.76 versus the broader market, a 52-week range of 64.02-95.3, average daily share volume of 5.0M, a public-listing history dating back to 1980, approximately 6K full-time employees. These structural characteristics shape how OKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.76 places OKE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. OKE 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 OKE?
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 OKE snapshot
As of May 15, 2026, spot at $92.22, ATM IV 28.00%, IV rank 1.72%, expected move 8.03%. The bear put spread on OKE 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 OKE specifically: OKE IV at 28.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a OKE bear put spread, with a market-implied 1-standard-deviation move of approximately 8.03% (roughly $7.40 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 OKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on OKE should anchor to the underlying notional of $92.22 per share and to the trader's directional view on OKE stock.
OKE bear put spread setup
The OKE 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 OKE near $92.22, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OKE 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 OKE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $90.00 | $2.00 |
| Sell 1 | Put | $90.00 | $2.00 |
OKE bear put spread risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $0.00
- Max Loss (per contract)
- $0.00
- 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.
OKE bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on OKE. 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% | $0.00 |
| $20.40 | -77.9% | $0.00 |
| $40.79 | -55.8% | $0.00 |
| $61.18 | -33.7% | $0.00 |
| $81.57 | -11.6% | $0.00 |
| $101.96 | +10.6% | $0.00 |
| $122.35 | +32.7% | $0.00 |
| $142.73 | +54.8% | $0.00 |
| $163.12 | +76.9% | $0.00 |
| $183.51 | +99.0% | $0.00 |
When traders use bear put spread on OKE
Bear put spreads on OKE reduce the cost of a bearish OKE stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
OKE thesis for this bear put spread
The market-implied 1-standard-deviation range for OKE extends from approximately $84.82 on the downside to $99.62 on the upside. A OKE bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on OKE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current OKE IV rank near 1.72% 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 OKE at 28.00%. As a Energy name, OKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OKE-specific events.
OKE 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. OKE positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OKE alongside the broader basket even when OKE-specific fundamentals are unchanged. Long-premium structures like a bear put spread on OKE 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 OKE chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on OKE?
- A bear put spread on OKE is the bear put spread strategy applied to OKE (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 OKE stock trading near $92.22, the strikes shown on this page are snapped to the nearest listed OKE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OKE 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 OKE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 28.00%), the computed maximum profit is $0.00 per contract and the computed maximum loss is $0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OKE bear put spread?
- The breakeven for the OKE 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 OKE market-implied 1-standard-deviation expected move is approximately 8.03%; 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 OKE?
- Bear put spreads on OKE reduce the cost of a bearish OKE 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 OKE implied volatility affect this bear put spread?
- OKE ATM IV is at 28.00% with IV rank near 1.72%, 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.