PSN Bear Put Spread Strategy
PSN (Parsons Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. It operates through two segments, Federal Solutions and Critical Infrastructure. The company offers cyber security and intelligence services, as well as offensive and defensive cybersecurity platforms, tools, and operations to the U.S. Department of Defense and the United States intelligence community; space and geospatial solutions, such as geospatial intelligence, threat analytics, space situational awareness, small satellite launch and integration, satellite ground systems, fight dynamics, and command, and control solutions to the National Geospatial-Intelligence Agency, National Reconnaissance Office, and multiple units within the U.S. Department of Defense. It also provides missile defense and C5ISR solutions, such as integrated air and missile defense, data fusion and analytics, platform system integration, directed energy, joint all-domain operations, and command and control systems to Defense Intelligence Agency and the U.S.
PSN (Parsons Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $5.39B, a trailing P/E of 23.68, a beta of 0.60 versus the broader market, a 52-week range of 48.23-89.5, average daily share volume of 1.3M, a public-listing history dating back to 2019, approximately 20K full-time employees. These structural characteristics shape how PSN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates PSN 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 PSN?
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 PSN snapshot
As of May 15, 2026, spot at $50.19, ATM IV 43.90%, IV rank 9.48%, expected move 12.59%. The bear put spread on PSN 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 34-day expiry.
Why this bear put spread structure on PSN specifically: PSN IV at 43.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a PSN bear put spread, with a market-implied 1-standard-deviation move of approximately 12.59% (roughly $6.32 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PSN expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSN should anchor to the underlying notional of $50.19 per share and to the trader's directional view on PSN stock.
PSN bear put spread setup
The PSN 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 PSN near $50.19, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSN chain at a 34-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 PSN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $50.00 | $2.48 |
| Sell 1 | Put | $50.00 | $2.48 |
PSN bear put spread risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $0.00
- Max Loss (per contract)
- $0.00
- 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.
PSN bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on PSN. 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% | $0.00 |
| $11.11 | -77.9% | $0.00 |
| $22.20 | -55.8% | $0.00 |
| $33.30 | -33.7% | $0.00 |
| $44.39 | -11.5% | $0.00 |
| $55.49 | +10.6% | $0.00 |
| $66.59 | +32.7% | $0.00 |
| $77.68 | +54.8% | $0.00 |
| $88.78 | +76.9% | $0.00 |
| $99.88 | +99.0% | $0.00 |
When traders use bear put spread on PSN
Bear put spreads on PSN reduce the cost of a bearish PSN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
PSN thesis for this bear put spread
The market-implied 1-standard-deviation range for PSN extends from approximately $43.87 on the downside to $56.51 on the upside. A PSN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on PSN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current PSN IV rank near 9.48% 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 PSN at 43.90%. As a Industrials name, PSN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSN-specific events.
PSN 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. PSN positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PSN alongside the broader basket even when PSN-specific fundamentals are unchanged. Long-premium structures like a bear put spread on PSN 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 PSN chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on PSN?
- A bear put spread on PSN is the bear put spread strategy applied to PSN (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 PSN stock trading near $50.19, the strikes shown on this page are snapped to the nearest listed PSN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PSN 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 PSN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 43.90%), the computed maximum profit is $0.00 per contract and the computed maximum loss is $0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PSN bear put spread?
- The breakeven for the PSN 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 PSN market-implied 1-standard-deviation expected move is approximately 12.59%; 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 PSN?
- Bear put spreads on PSN reduce the cost of a bearish PSN 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 PSN implied volatility affect this bear put spread?
- PSN ATM IV is at 43.90% with IV rank near 9.48%, 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.