RDCM Bear Put Spread Strategy

RDCM (RADCOM Ltd.), in the Communication Services sector, (Telecommunications Services industry), listed on NASDAQ.

RADCOM Ltd. provides sophisticated, cloud-native solutions for network intelligence and service assurance, primarily designed for telecommunications companies and communication service providers (CSPs). These offerings are fully prepared for 5G environments. The company's flagship product, RADCOM ACE, is an integrated suite comprising several core components: RADCOM Service Assurance: A virtualized, cloud-native, and 5G-compatible tool that grants operators comprehensive oversight of their entire network and deep understanding of customer experience. RADCOM Network Visibility: This cloud-native network packet broker and filtering system enables CSPs to efficiently manage substantial volumes of network traffic across diverse cloud environments, offering precise control over data visibility for targeted analysis. RADCOM Network Insights: A business intelligence platform that generates actionable insights for various operational scenarios by leveraging data collected and harmonized through both Service Assurance and Network Visibility. RADCOM's technology is compatible with a wide array of mobile and fixed network standards, including 5G, Long Term Evolution (LTE), Voice over LTE (VoLTE), Voice over Wi-Fi (VoWiFi), IP Multimedia Subsystem (IMS), Voice over IP (VoIP), and Universal Mobile Telecommunication Service (UMTS).

RDCM (RADCOM Ltd.) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $172.7M, a trailing P/E of 13.63, a beta of 0.74 versus the broader market, a 52-week range of 9.4-16.74, average daily share volume of 203K, a public-listing history dating back to 1997, approximately 325 full-time employees. These structural characteristics shape how RDCM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.74 places RDCM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a bear put spread on RDCM?

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.

RDCM snapshot

As of August 14, 2026, spot at $10.54, ATM IV 293.00%, expected move 84.00%. The bear put spread on RDCM below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this bear put spread structure on RDCM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for RDCM is inferred from ATM IV at 293.00% alone, with a market-implied 1-standard-deviation move of approximately 84.00% (roughly $8.85 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RDCM expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDCM should anchor to the underlying notional of $10.54 per share and to the trader's directional view on RDCM stock.

RDCM bear put spread setup

The RDCM 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 RDCM at $10.54 on that close, the first option leg uses a $10.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RDCM chain at a 35-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 RDCM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$10.54	N/A
Sell 1	Put	$10.01	N/A

RDCM bear put spread risk and reward

Net Premium / Debit: N/A
Max Profit (per contract): Unbounded
Max Loss (per contract): Unbounded
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.

RDCM bear put spread payoff curve

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

When traders use bear put spread on RDCM

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

RDCM thesis for this bear put spread

The market-implied 1-standard-deviation range for RDCM extends from approximately $1.69 on the downside to $19.39 on the upside. A RDCM bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on RDCM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. As a Communication Services name, RDCM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RDCM-specific events.

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

Frequently asked questions

What is a bear put spread on RDCM?: A bear put spread on RDCM is the bear put spread strategy applied to RDCM (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 RDCM stock at $10.54 on the most recent close, the strikes shown on this page are snapped to the nearest listed RDCM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RDCM 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 RDCM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 293.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RDCM bear put spread?: The breakeven for the RDCM bear put spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 RDCM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 84.00%; 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 RDCM?: Bear put spreads on RDCM reduce the cost of a bearish RDCM 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 RDCM implied volatility affect this bear put spread?: Current RDCM ATM IV is 293.00%; IV rank context is unavailable in the current snapshot.