PRGS Bear Put Spread Strategy
PRGS (Progress Software Corporation), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Progress Software Corporation develops, deploys, and manages business applications. The company offers OpenEdge, a development software, which builds multi-language applications for secure deployment across various platforms and devices, as well as cloud; developer tools that consists of components for user interface development for Web, mobile, desktop, chat, and AR/VR apps, as well as automated application testing and reporting tools; Sitefinity, a web content management and customer analytics platform; Corticon, a business rules management system that provides applications with decision automation and change process, and decision-related insight capabilities. It also offers DataDirect Connect, which provides data connectivity using industry-standard interfaces to connect applications running on various platforms; MOVEit that offers secure collaboration and automated file transfers of critical business information; Chef, an infrastructure automation platform to build, deploy, manage, and secure applications in multi-cloud and hybrid environments, and on-premises; and WhatsUp Gold, a network monitoring solution. In addition, the company provides Kemp LoadMaster, a load balancing solutions; and Kemp Flowmon network performance monitoring and diagnostic solutions that collect and analyze network telemetry from various sources. Further, it provides project management, implementation, custom development, programming, and other services, as well as web-enable applications; and training services. The company sells its products to end users, independent software vendors, original equipment manufacturers, and system integrators.
PRGS (Progress Software Corporation) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $1.11B, a trailing P/E of 13.08, a beta of 0.78 versus the broader market, a 52-week range of 23.82-65.5, average daily share volume of 1.1M, a public-listing history dating back to 1991, approximately 3K full-time employees. These structural characteristics shape how PRGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places PRGS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PRGS 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 PRGS?
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 PRGS snapshot
As of May 14, 2026, spot at $26.72, ATM IV 58.70%, IV rank 47.50%, expected move 16.83%. The bear put spread on PRGS 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 217-day expiry.
Why this bear put spread structure on PRGS specifically: PRGS IV at 58.70% 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 16.83% (roughly $4.50 on the underlying). The 217-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PRGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRGS should anchor to the underlying notional of $26.72 per share and to the trader's directional view on PRGS stock.
PRGS bear put spread setup
The PRGS 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 PRGS near $26.72, the first option leg uses a $27.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRGS chain at a 217-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 PRGS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $27.50 | $5.05 |
| Sell 1 | Put | $25.00 | $3.80 |
PRGS bear put spread risk and reward
- Net Premium / Debit
- -$125.00
- Max Profit (per contract)
- $125.00
- Max Loss (per contract)
- -$125.00
- Breakeven(s)
- $26.25
- Risk / Reward Ratio
- 1.000
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.
PRGS bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on PRGS. 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% | +$125.00 |
| $5.92 | -77.9% | +$125.00 |
| $11.82 | -55.7% | +$125.00 |
| $17.73 | -33.6% | +$125.00 |
| $23.64 | -11.5% | +$125.00 |
| $29.54 | +10.6% | -$125.00 |
| $35.45 | +32.7% | -$125.00 |
| $41.36 | +54.8% | -$125.00 |
| $47.26 | +76.9% | -$125.00 |
| $53.17 | +99.0% | -$125.00 |
When traders use bear put spread on PRGS
Bear put spreads on PRGS reduce the cost of a bearish PRGS stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
PRGS thesis for this bear put spread
The market-implied 1-standard-deviation range for PRGS extends from approximately $22.22 on the downside to $31.22 on the upside. A PRGS bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on PRGS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current PRGS IV rank near 47.50% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on PRGS should anchor more to the directional view and the expected-move geometry. As a Technology name, PRGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRGS-specific events.
PRGS 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. PRGS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRGS alongside the broader basket even when PRGS-specific fundamentals are unchanged. Long-premium structures like a bear put spread on PRGS 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 PRGS chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on PRGS?
- A bear put spread on PRGS is the bear put spread strategy applied to PRGS (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 PRGS stock trading near $26.72, the strikes shown on this page are snapped to the nearest listed PRGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PRGS 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 PRGS bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 58.70%), the computed maximum profit is $125.00 per contract and the computed maximum loss is -$125.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PRGS bear put spread?
- The breakeven for the PRGS bear put spread priced on this page is roughly $26.25 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 PRGS market-implied 1-standard-deviation expected move is approximately 16.83%; 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 PRGS?
- Bear put spreads on PRGS reduce the cost of a bearish PRGS 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 PRGS implied volatility affect this bear put spread?
- PRGS ATM IV is at 58.70% with IV rank near 47.50%, 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.