REFI Bear Put Spread Strategy
REFI (Chicago Atlantic Real Estate Finance, Inc.), in the Real Estate sector, (REIT - Mortgage industry), listed on NASDAQ.
Chicago Atlantic Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. It originates, structures, and invests in first mortgage loans and alternative structured financings secured by commercial real estate properties. The company offers senior loans to state-licensed operators and property owners in the cannabis industry. It has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2021 and is based in Chicago, Illinois.
REFI (Chicago Atlantic Real Estate Finance, Inc.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $240.5M, a trailing P/E of 7.76, a beta of 0.32 versus the broader market, a 52-week range of 10.74-15.1, average daily share volume of 166K, a public-listing history dating back to 2021. These structural characteristics shape how REFI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.32 indicates REFI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 7.76 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. REFI 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 REFI?
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 REFI snapshot
As of May 15, 2026, spot at $11.21, ATM IV 210.40%, IV rank 46.24%, expected move 60.32%. The bear put spread on REFI 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 REFI specifically: REFI IV at 210.40% 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 60.32% (roughly $6.76 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 REFI expiries trade a higher absolute premium for lower per-day decay. Position sizing on REFI should anchor to the underlying notional of $11.21 per share and to the trader's directional view on REFI stock.
REFI bear put spread setup
The REFI 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 REFI near $11.21, the first option leg uses a $11.21 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REFI 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 REFI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $11.21 | N/A |
| Sell 1 | Put | $10.65 | N/A |
REFI 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.
REFI bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on REFI. 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 REFI
Bear put spreads on REFI reduce the cost of a bearish REFI stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
REFI thesis for this bear put spread
The market-implied 1-standard-deviation range for REFI extends from approximately $4.45 on the downside to $17.97 on the upside. A REFI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on REFI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current REFI IV rank near 46.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on REFI should anchor more to the directional view and the expected-move geometry. As a Real Estate name, REFI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REFI-specific events.
REFI 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. REFI positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REFI alongside the broader basket even when REFI-specific fundamentals are unchanged. Long-premium structures like a bear put spread on REFI 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 REFI chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on REFI?
- A bear put spread on REFI is the bear put spread strategy applied to REFI (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 REFI stock trading near $11.21, the strikes shown on this page are snapped to the nearest listed REFI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REFI 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 REFI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 210.40%), 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 REFI bear put spread?
- The breakeven for the REFI 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 REFI market-implied 1-standard-deviation expected move is approximately 60.32%; 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 REFI?
- Bear put spreads on REFI reduce the cost of a bearish REFI 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 REFI implied volatility affect this bear put spread?
- REFI ATM IV is at 210.40% with IV rank near 46.24%, 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.