How are RARE 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 RARE bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 138.20%), the computed maximum profit is $99.00 per contract and the computed maximum loss is -$151.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RARE bear put spread?

The breakeven for the RARE bear put spread priced on this page is roughly $25.99 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 RARE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 39.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

RARE ATM IV is at 138.20% with IV rank near 27.45%, 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.

RARE Bear Put Spread Strategy

RARE (Ultragenyx Pharmaceutical Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Ultragenyx Pharmaceutical Inc. is a biopharmaceutical firm dedicated to discovering, developing, and commercializing innovative treatments for rare and ultra-rare genetic conditions. Its operations span North America, Europe, and other international markets. The company's portfolio of marketed biologic products addresses several serious diseases. This includes Crysvita (burosumab), an antibody that targets fibroblast growth factor 23, used to treat X-linked hypophosphatemia and tumor-induced osteomalacia. Mepsevii offers enzyme replacement therapy for both pediatric and adult patients suffering from Mucopolysaccharidosis VII. Dojolvi is available for individuals with long-chain fatty acid oxidation disorders, while Evkeeza (evinacumab) provides a treatment option for homozygous familial hypercholesterolemia.

RARE (Ultragenyx Pharmaceutical Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.65B, a beta of 0.31 versus the broader market, a 52-week range of 18.29-39.89, average daily share volume of 2.1M, a public-listing history dating back to 2014, approximately 1K full-time employees. These structural characteristics shape how RARE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.31 indicates RARE 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 RARE?

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.

RARE snapshot

As of August 14, 2026, spot at $26.50, ATM IV 138.20%, IV rank 27.45%, expected move 39.62%. The bear put spread on RARE 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 7-day expiry.

Why this bear put spread structure on RARE specifically: RARE IV at 138.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a RARE bear put spread, with a market-implied 1-standard-deviation move of approximately 39.62% (roughly $10.50 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RARE expiries trade a higher absolute premium for lower per-day decay. Position sizing on RARE should anchor to the underlying notional of $26.50 per share and to the trader's directional view on RARE stock.

RARE bear put spread setup

The RARE 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 RARE at $26.50 on that close, 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 RARE chain at a 7-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 RARE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$27.50	$2.05
Sell 1	Put	$25.00	$0.54

RARE bear put spread risk and reward

Net Premium / Debit: -$151.00
Max Profit (per contract): $99.00
Max Loss (per contract): -$151.00
Breakeven(s): $25.99
Risk / Reward Ratio: 0.656

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.

RARE bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on RARE. 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%	+$99.00
$5.87	-77.9%	+$99.00
$11.73	-55.7%	+$99.00
$17.58	-33.6%	+$99.00
$23.44	-11.5%	+$99.00
$29.30	+10.6%	-$151.00
$35.16	+32.7%	-$151.00
$41.02	+54.8%	-$151.00
$46.88	+76.9%	-$151.00
$52.73	+99.0%	-$151.00

When traders use bear put spread on RARE

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

RARE thesis for this bear put spread

The market-implied 1-standard-deviation range for RARE extends from approximately $16.00 on the downside to $37.00 on the upside. A RARE bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on RARE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current RARE IV rank near 27.45% 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 RARE at 138.20%. As a Healthcare name, RARE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RARE-specific events.

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

Frequently asked questions

What is a bear put spread on RARE?: A bear put spread on RARE is the bear put spread strategy applied to RARE (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 RARE stock at $26.50 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RARE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RARE 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 RARE bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 138.20%), the computed maximum profit is $99.00 per contract and the computed maximum loss is -$151.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RARE bear put spread?: The breakeven for the RARE bear put spread priced on this page is roughly $25.99 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 RARE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 39.62%; 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 RARE?: Bear put spreads on RARE reduce the cost of a bearish RARE 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 RARE implied volatility affect this bear put spread?: RARE ATM IV is at 138.20% with IV rank near 27.45%, 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.