RFL Bear Put Spread Strategy
RFL (Rafael Holdings, Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NYSE.
Rafael Holdings, Inc. holds interests in clinical and early stage pharmaceutical companies, and commercial real estate assets in the United States and Israel. The company operates in two segments, Pharmaceuticals and Real Estate. It engages in the leasing of a commercial office building, as well as an associated 800-car public garage; and development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. The company's lead drug candidate is CPI-613 (devimistat), which is being evaluated in various clinical studies, including two Phase III registrational clinical trials for the treatment of metastatic pancreatic cancer and r/r acute myeloid leukemia. Rafael Holdings, Inc. is headquartered in Newark, New Jersey.
RFL (Rafael Holdings, Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $49.6M, a beta of 0.50 versus the broader market, a 52-week range of 1.12-3.19, average daily share volume of 81K, a public-listing history dating back to 2018, approximately 28 full-time employees. These structural characteristics shape how RFL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.50 indicates RFL 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 RFL?
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 RFL snapshot
As of May 15, 2026, spot at $1.31, ATM IV 23.00%, IV rank 0.56%, expected move 6.59%. The bear put spread on RFL 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 RFL specifically: RFL IV at 23.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a RFL bear put spread, with a market-implied 1-standard-deviation move of approximately 6.59% (roughly $0.09 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 RFL expiries trade a higher absolute premium for lower per-day decay. Position sizing on RFL should anchor to the underlying notional of $1.31 per share and to the trader's directional view on RFL stock.
RFL bear put spread setup
The RFL 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 RFL near $1.31, the first option leg uses a $1.31 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RFL 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 RFL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $1.31 | N/A |
| Sell 1 | Put | $1.24 | N/A |
RFL 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.
RFL bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on RFL. 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 RFL
Bear put spreads on RFL reduce the cost of a bearish RFL stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
RFL thesis for this bear put spread
The market-implied 1-standard-deviation range for RFL extends from approximately $1.22 on the downside to $1.40 on the upside. A RFL bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on RFL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current RFL IV rank near 0.56% 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 RFL at 23.00%. As a Real Estate name, RFL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RFL-specific events.
RFL 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. RFL positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RFL alongside the broader basket even when RFL-specific fundamentals are unchanged. Long-premium structures like a bear put spread on RFL 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 RFL chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on RFL?
- A bear put spread on RFL is the bear put spread strategy applied to RFL (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 RFL stock trading near $1.31, the strikes shown on this page are snapped to the nearest listed RFL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RFL 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 RFL bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 23.00%), 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 RFL bear put spread?
- The breakeven for the RFL 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 RFL market-implied 1-standard-deviation expected move is approximately 6.59%; 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 RFL?
- Bear put spreads on RFL reduce the cost of a bearish RFL 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 RFL implied volatility affect this bear put spread?
- RFL ATM IV is at 23.00% with IV rank near 0.56%, 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.