How are PGY 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 PGY bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 73.90%), the computed maximum profit is $42.50 per contract and the computed maximum loss is -$57.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PGY bear put spread?

The breakeven for the PGY bear put spread priced on this page is roughly $13.43 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 PGY market-implied 1-standard-deviation expected move is approximately 21.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

PGY ATM IV is at 73.90% with IV rank near 28.26%, 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.

PGY Bear Put Spread Strategy

PGY (Pagaya Technologies Ltd.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

Pagaya Technologies Ltd. operates as a financial technology company in Israel, the United States, and the Cayman Islands. It develops and implements proprietary artificial intelligence technology and related software solutions to assist partners to originate loans and other assets. Its partners include high-growth financial technology companies, incumbent financial institutions, auto finance providers, and brokers. The company was founded in 2016 and is headquartered in Tel Aviv, Israel.

PGY (Pagaya Technologies Ltd.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $1.09B, a trailing P/E of 11.82, a beta of 5.44 versus the broader market, a 52-week range of 10.4-44.99, average daily share volume of 3.4M, a public-listing history dating back to 2021, approximately 527 full-time employees. These structural characteristics shape how PGY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 5.44 indicates PGY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 11.82 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a bear put spread on PGY?

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 PGY snapshot

As of May 15, 2026, spot at $13.54, ATM IV 73.90%, IV rank 28.26%, expected move 21.19%. The bear put spread on PGY 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 98-day expiry.

Why this bear put spread structure on PGY specifically: PGY IV at 73.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a PGY bear put spread, with a market-implied 1-standard-deviation move of approximately 21.19% (roughly $2.87 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PGY expiries trade a higher absolute premium for lower per-day decay. Position sizing on PGY should anchor to the underlying notional of $13.54 per share and to the trader's directional view on PGY stock.

PGY bear put spread setup

The PGY 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 PGY near $13.54, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PGY chain at a 98-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 PGY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$14.00	$2.58
Sell 1	Put	$13.00	$2.00

PGY bear put spread risk and reward

Net Premium / Debit: -$57.50
Max Profit (per contract): $42.50
Max Loss (per contract): -$57.50
Breakeven(s): $13.43
Risk / Reward Ratio: 0.739

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.

PGY bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on PGY. 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	-99.9%	+$42.50
$3.00	-77.8%	+$42.50
$6.00	-55.7%	+$42.50
$8.99	-33.6%	+$42.50
$11.98	-11.5%	+$42.50
$14.97	+10.6%	-$57.50
$17.97	+32.7%	-$57.50
$20.96	+54.8%	-$57.50
$23.95	+76.9%	-$57.50
$26.94	+99.0%	-$57.50

When traders use bear put spread on PGY

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

PGY thesis for this bear put spread

The market-implied 1-standard-deviation range for PGY extends from approximately $10.67 on the downside to $16.41 on the upside. A PGY bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on PGY, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current PGY IV rank near 28.26% 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 PGY at 73.90%. As a Technology name, PGY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PGY-specific events.

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

Frequently asked questions

What is a bear put spread on PGY?: A bear put spread on PGY is the bear put spread strategy applied to PGY (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 PGY stock trading near $13.54, the strikes shown on this page are snapped to the nearest listed PGY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PGY 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 PGY bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 73.90%), the computed maximum profit is $42.50 per contract and the computed maximum loss is -$57.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PGY bear put spread?: The breakeven for the PGY bear put spread priced on this page is roughly $13.43 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 PGY market-implied 1-standard-deviation expected move is approximately 21.19%; 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 PGY?: Bear put spreads on PGY reduce the cost of a bearish PGY 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 PGY implied volatility affect this bear put spread?: PGY ATM IV is at 73.90% with IV rank near 28.26%, 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.