How are PHM 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 PHM bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.67%), the computed maximum profit is $340.00 per contract and the computed maximum loss is -$260.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PHM bear put spread?

The breakeven for the PHM bear put spread priced on this page is roughly $127.40 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PHM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

PHM ATM IV is at 32.67% with IV rank near 24.78%, 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.

PHM Bear Put Spread Strategy

PHM (PulteGroup, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.

PulteGroup, Inc. engages in the homebuilding business. The firm is also involved in mortgage banking and title and insurance brokerage operations. It operates through the Homebuilding and Financial services business segments. The Homebuilding segment includes operations from Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia, Georgia, North Carolina, South Carolina, Tennessee, Florida, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio, Texas, Arizona, California, Nevada, New Mexico, and Washington. The Financial Services segment is composed of mortgage banking and title operations. The company was founded by William J.

PHM (PulteGroup, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $24.93B, a trailing P/E of 12.99, a beta of 1.20 versus the broader market, a 52-week range of 108.49-144.5, average daily share volume of 1.9M, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how PHM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.20 places PHM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PHM 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 PHM?

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.

PHM snapshot

As of August 14, 2026, spot at $130.19, ATM IV 32.67%, IV rank 24.78%, expected move 9.37%. The bear put spread on PHM below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this bear put spread structure on PHM specifically: PHM IV at 32.67% is on the cheap side of its 1-year range, which favors premium-buying structures like a PHM bear put spread, with a market-implied 1-standard-deviation move of approximately 9.37% (roughly $12.19 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PHM expiries trade a higher absolute premium for lower per-day decay. Position sizing on PHM should anchor to the underlying notional of $130.19 per share and to the trader's directional view on PHM stock.

PHM bear put spread setup

The PHM bear put spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PHM at $130.19 on that close, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PHM chain at a 28-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 PHM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$130.00	$4.35
Sell 1	Put	$124.00	$1.75

PHM bear put spread risk and reward

Net Premium / Debit: -$260.00
Max Profit (per contract): $340.00
Max Loss (per contract): -$260.00
Breakeven(s): $127.40
Risk / Reward Ratio: 1.308

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.

PHM bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on PHM. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$340.00
$28.79	-77.9%	+$340.00
$57.58	-55.8%	+$340.00
$86.36	-33.7%	+$340.00
$115.15	-11.6%	+$340.00
$143.93	+10.6%	-$260.00
$172.72	+32.7%	-$260.00
$201.50	+54.8%	-$260.00
$230.29	+76.9%	-$260.00
$259.07	+99.0%	-$260.00

When traders use bear put spread on PHM

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

PHM thesis for this bear put spread

The market-implied 1-standard-deviation range for PHM extends from approximately $118.00 on the downside to $142.38 on the upside. A PHM bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on PHM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current PHM IV rank near 24.78% 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 PHM at 32.67%. As a Consumer Cyclical name, PHM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PHM-specific events.

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

Frequently asked questions

What is a bear put spread on PHM?: A bear put spread on PHM is the bear put spread strategy applied to PHM (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 PHM stock at $130.19 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PHM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PHM 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 PHM bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.67%), the computed maximum profit is $340.00 per contract and the computed maximum loss is -$260.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PHM bear put spread?: The breakeven for the PHM bear put spread priced on this page is roughly $127.40 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PHM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.37%; 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 PHM?: Bear put spreads on PHM reduce the cost of a bearish PHM 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 PHM implied volatility affect this bear put spread?: PHM ATM IV is at 32.67% with IV rank near 24.78%, 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.