OXSQ Bear Put Spread Strategy
OXSQ (Oxford Square Capital Corp.), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Oxford Square Capital Corp. functions as a business development company (BDC) and a non-diversified, closed-end investment management entity, specializing in private equity and mezzanine financing. The firm's investment scope includes both publicly traded and private companies. It allocates capital across a variety of financial instruments, such as secured and unsecured senior debt, various types of subordinated debt, preferred and common stock, and syndicated bank loans. Oxford Square Capital Corp. primarily directs its investments towards technology-focused enterprises. These include companies operating in sectors like computer software, internet services, IT infrastructure and support, media, telecommunications and related equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems. The company concentrates on businesses with annual revenues under $200 million and a market capitalization or enterprise value of less than $300 million.
OXSQ (Oxford Square Capital Corp.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $123.5M, a beta of 0.39 versus the broader market, a 52-week range of 1.05-2.42, average daily share volume of 2.1M, a public-listing history dating back to 2003. These structural characteristics shape how OXSQ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.39 indicates OXSQ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OXSQ 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 OXSQ?
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 OXSQ snapshot
As of June 30, 2026, spot at $1.33, ATM IV 51.80%, IV rank 8.88%, expected move 14.85%. The bear put spread on OXSQ 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 OXSQ specifically: OXSQ IV at 51.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a OXSQ bear put spread, with a market-implied 1-standard-deviation move of approximately 14.85% (roughly $0.20 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 OXSQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on OXSQ should anchor to the underlying notional of $1.33 per share and to the trader's directional view on OXSQ stock.
OXSQ bear put spread setup
The OXSQ 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 OXSQ near $1.33, the first option leg uses a $1.33 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OXSQ 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 OXSQ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $1.33 | N/A |
| Sell 1 | Put | $1.26 | N/A |
OXSQ 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.
OXSQ bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on OXSQ. 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 OXSQ
Bear put spreads on OXSQ reduce the cost of a bearish OXSQ stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
OXSQ thesis for this bear put spread
The market-implied 1-standard-deviation range for OXSQ extends from approximately $1.13 on the downside to $1.53 on the upside. A OXSQ bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on OXSQ, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current OXSQ IV rank near 8.88% 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 OXSQ at 51.80%. As a Financial Services name, OXSQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OXSQ-specific events.
OXSQ 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. OXSQ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OXSQ alongside the broader basket even when OXSQ-specific fundamentals are unchanged. Long-premium structures like a bear put spread on OXSQ 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 OXSQ chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on OXSQ?
- A bear put spread on OXSQ is the bear put spread strategy applied to OXSQ (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 OXSQ stock trading near $1.33, the strikes shown on this page are snapped to the nearest listed OXSQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OXSQ 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 OXSQ bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 51.80%), 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 OXSQ bear put spread?
- The breakeven for the OXSQ 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 OXSQ market-implied 1-standard-deviation expected move is approximately 14.85%; 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 OXSQ?
- Bear put spreads on OXSQ reduce the cost of a bearish OXSQ 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 OXSQ implied volatility affect this bear put spread?
- OXSQ ATM IV is at 51.80% with IV rank near 8.88%, 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.