OVID Bear Put Spread Strategy
OVID (Ovid Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Ovid Therapeutics Inc. is a biopharmaceutical firm dedicated to creating significant treatments for individuals and families impacted by neurological disorders across the United States. The company's robust pipeline features several key therapeutic candidates: OV101, a drug candidate currently undergoing Phase 2A clinical trials for Fragile X syndrome; OV329, an inhibitor targeting GABA aminotransferase, aimed at managing seizures linked to tuberous sclerosis complex and infantile spasms; and OV350, a small molecule developed to address various forms of epilepsy. Beyond these, Ovid is also advancing OV882, a short hairpin RNA (shRNA) gene therapy designed to treat Angelman syndrome, and OV815, targeting neurological disorders connected to the kinesin-family of proteins. To bolster its research and development efforts, Ovid maintains licensing and collaborative agreements with prominent entities such as Healx, AstraZeneca AB, H. Lundbeck A/S, Northwestern University, and Marinus Pharmaceuticals, Inc. Established in 2014, the company's corporate headquarters are situated in New York, New York.
OVID (Ovid Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $336.3M, a beta of 0.18 versus the broader market, a 52-week range of 0.3-3.105, average daily share volume of 2.9M, a public-listing history dating back to 2017, approximately 23 full-time employees. These structural characteristics shape how OVID stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.18 indicates OVID has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a bear put spread on OVID?
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 OVID snapshot
As of June 30, 2026, spot at $2.69, ATM IV 109.90%, IV rank 19.39%, expected move 31.51%. The bear put spread on OVID 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 17-day expiry.
Why this bear put spread structure on OVID specifically: OVID IV at 109.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a OVID bear put spread, with a market-implied 1-standard-deviation move of approximately 31.51% (roughly $0.85 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OVID expiries trade a higher absolute premium for lower per-day decay. Position sizing on OVID should anchor to the underlying notional of $2.69 per share and to the trader's directional view on OVID stock.
OVID bear put spread setup
The OVID 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 OVID near $2.69, the first option leg uses a $2.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OVID chain at a 17-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 OVID shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $2.69 | N/A |
| Sell 1 | Put | $2.56 | N/A |
OVID bear put spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- 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.
OVID bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on OVID. 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.
When traders use bear put spread on OVID
Bear put spreads on OVID reduce the cost of a bearish OVID stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
OVID thesis for this bear put spread
The market-implied 1-standard-deviation range for OVID extends from approximately $1.84 on the downside to $3.54 on the upside. A OVID bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on OVID, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current OVID IV rank near 19.39% 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 OVID at 109.90%. As a Healthcare name, OVID options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OVID-specific events.
OVID 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. OVID positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OVID alongside the broader basket even when OVID-specific fundamentals are unchanged. Long-premium structures like a bear put spread on OVID 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 OVID chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on OVID?
- A bear put spread on OVID is the bear put spread strategy applied to OVID (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 OVID stock trading near $2.69, the strikes shown on this page are snapped to the nearest listed OVID chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OVID 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 OVID bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 109.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OVID bear put spread?
- The breakeven for the OVID 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 OVID market-implied 1-standard-deviation expected move is approximately 31.51%; 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 OVID?
- Bear put spreads on OVID reduce the cost of a bearish OVID 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 OVID implied volatility affect this bear put spread?
- OVID ATM IV is at 109.90% with IV rank near 19.39%, 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.