How are RIG 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 RIG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 54.21%), the computed maximum profit is $31.00 per contract and the computed maximum loss is -$19.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RIG bear put spread?

The breakeven for the RIG bear put spread priced on this page is roughly $6.81 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 RIG market-implied 1-standard-deviation expected move is approximately 15.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

RIG ATM IV is at 54.21% with IV rank near 15.62%, 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.

RIG Bear Put Spread Strategy

RIG (Transocean Ltd.), in the Energy sector, (Oil & Gas Drilling industry), listed on NYSE.

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts its mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. As of February 14, 2022, the company had partial ownership interests in and operated a fleet of 37 mobile offshore drilling units, including 27 ultra-deep water and 10 harsh environment floaters. It serves integrated energy companies, government-owned or government-controlled oil companies, and other independent energy companies. The company was founded in 1926 and is based in Steinhausen, Switzerland.

RIG (Transocean Ltd.) trades in the Energy sector, specifically Oil & Gas Drilling, with a market capitalization of approximately $5.98B, a beta of 1.34 versus the broader market, a 52-week range of 2.34-7.14, average daily share volume of 40.7M, a public-listing history dating back to 1993, approximately 5K full-time employees. These structural characteristics shape how RIG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.34 indicates RIG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a bear put spread on RIG?

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 RIG snapshot

As of May 15, 2026, spot at $7.03, ATM IV 54.21%, IV rank 15.62%, expected move 15.54%. The bear put spread on RIG 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 28-day expiry.

Why this bear put spread structure on RIG specifically: RIG IV at 54.21% is on the cheap side of its 1-year range, which favors premium-buying structures like a RIG bear put spread, with a market-implied 1-standard-deviation move of approximately 15.54% (roughly $1.09 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on RIG should anchor to the underlying notional of $7.03 per share and to the trader's directional view on RIG stock.

RIG bear put spread setup

The RIG 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 RIG near $7.03, the first option leg uses a $7.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RIG chain at a 28-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 RIG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$7.00	$0.40
Sell 1	Put	$6.50	$0.21

RIG bear put spread risk and reward

Net Premium / Debit: -$19.00
Max Profit (per contract): $31.00
Max Loss (per contract): -$19.00
Breakeven(s): $6.81
Risk / Reward Ratio: 1.632

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.

RIG bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on RIG. 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	-99.9%	+$31.00
$1.56	-77.8%	+$31.00
$3.12	-55.7%	+$31.00
$4.67	-33.6%	+$31.00
$6.22	-11.5%	+$31.00
$7.78	+10.6%	-$19.00
$9.33	+32.7%	-$19.00
$10.88	+54.8%	-$19.00
$12.44	+76.9%	-$19.00
$13.99	+99.0%	-$19.00

When traders use bear put spread on RIG

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

RIG thesis for this bear put spread

The market-implied 1-standard-deviation range for RIG extends from approximately $5.94 on the downside to $8.12 on the upside. A RIG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on RIG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current RIG IV rank near 15.62% 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 RIG at 54.21%. As a Energy name, RIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RIG-specific events.

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

Frequently asked questions

What is a bear put spread on RIG?: A bear put spread on RIG is the bear put spread strategy applied to RIG (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 RIG stock trading near $7.03, the strikes shown on this page are snapped to the nearest listed RIG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RIG 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 RIG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 54.21%), the computed maximum profit is $31.00 per contract and the computed maximum loss is -$19.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RIG bear put spread?: The breakeven for the RIG bear put spread priced on this page is roughly $6.81 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 RIG market-implied 1-standard-deviation expected move is approximately 15.54%; 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 RIG?: Bear put spreads on RIG reduce the cost of a bearish RIG 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 RIG implied volatility affect this bear put spread?: RIG ATM IV is at 54.21% with IV rank near 15.62%, 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.