How are OTIS 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 OTIS bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is $177.50 per contract and the computed maximum loss is -$72.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OTIS bear put spread?

The breakeven for the OTIS bear put spread priced on this page is roughly $69.28 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 OTIS market-implied 1-standard-deviation expected move is approximately 7.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

OTIS ATM IV is at 25.50% with IV rank near 67.51%, 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.

OTIS Bear Put Spread Strategy

OTIS (Otis Worldwide Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

Otis Worldwide Corporation manufactures, installs, and services elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. It had a network of approximately 34,000 service mechanics operating approximately 1,400 branches and offices. The company was founded in 1853 and is headquartered in Farmington, Connecticut.

OTIS (Otis Worldwide Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $28.10B, a trailing P/E of 19.19, a beta of 0.94 versus the broader market, a 52-week range of 72.51-101.42, average daily share volume of 3.9M, a public-listing history dating back to 2020, approximately 72K full-time employees. These structural characteristics shape how OTIS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.94 places OTIS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. OTIS 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 OTIS?

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 OTIS snapshot

As of May 15, 2026, spot at $70.96, ATM IV 25.50%, IV rank 67.51%, expected move 7.31%. The bear put spread on OTIS 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 OTIS specifically: OTIS IV at 25.50% 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 7.31% (roughly $5.19 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 OTIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on OTIS should anchor to the underlying notional of $70.96 per share and to the trader's directional view on OTIS stock.

OTIS bear put spread setup

The OTIS 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 OTIS near $70.96, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OTIS 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 OTIS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$70.00	$1.60
Sell 1	Put	$67.50	$0.88

OTIS bear put spread risk and reward

Net Premium / Debit: -$72.50
Max Profit (per contract): $177.50
Max Loss (per contract): -$72.50
Breakeven(s): $69.28
Risk / Reward Ratio: 2.448

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.

OTIS bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on OTIS. 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%	+$177.50
$15.70	-77.9%	+$177.50
$31.39	-55.8%	+$177.50
$47.08	-33.7%	+$177.50
$62.76	-11.5%	+$177.50
$78.45	+10.6%	-$72.50
$94.14	+32.7%	-$72.50
$109.83	+54.8%	-$72.50
$125.52	+76.9%	-$72.50
$141.21	+99.0%	-$72.50

When traders use bear put spread on OTIS

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

OTIS thesis for this bear put spread

The market-implied 1-standard-deviation range for OTIS extends from approximately $65.77 on the downside to $76.15 on the upside. A OTIS bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on OTIS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current OTIS IV rank near 67.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on OTIS should anchor more to the directional view and the expected-move geometry. As a Industrials name, OTIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OTIS-specific events.

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

Frequently asked questions

What is a bear put spread on OTIS?: A bear put spread on OTIS is the bear put spread strategy applied to OTIS (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 OTIS stock trading near $70.96, the strikes shown on this page are snapped to the nearest listed OTIS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OTIS 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 OTIS bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is $177.50 per contract and the computed maximum loss is -$72.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OTIS bear put spread?: The breakeven for the OTIS bear put spread priced on this page is roughly $69.28 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 OTIS market-implied 1-standard-deviation expected move is approximately 7.31%; 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 OTIS?: Bear put spreads on OTIS reduce the cost of a bearish OTIS 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 OTIS implied volatility affect this bear put spread?: OTIS ATM IV is at 25.50% with IV rank near 67.51%, 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.