How are RUN 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 RUN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 71.98%), the computed maximum profit is $60.50 per contract and the computed maximum loss is -$39.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RUN bear put spread?

The breakeven for the RUN bear put spread priced on this page is roughly $13.61 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 RUN market-implied 1-standard-deviation expected move is approximately 20.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

RUN ATM IV is at 71.98% with IV rank near 14.73%, 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.

RUN Bear Put Spread Strategy

RUN (Sunrun Inc.), in the Energy sector, (Solar industry), listed on NASDAQ.

Sunrun Inc. engages in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems. Its primary customers are residential homeowners. The company markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing, and referral channels, as well as its partner network. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.

RUN (Sunrun Inc.) trades in the Energy sector, specifically Solar, with a market capitalization of approximately $3.45B, a trailing P/E of 5.97, a beta of 2.25 versus the broader market, a 52-week range of 5.38-22.44, average daily share volume of 10.1M, a public-listing history dating back to 2015, approximately 11K full-time employees. These structural characteristics shape how RUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.25 indicates RUN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 5.97 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a bear put spread on RUN?

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 RUN snapshot

As of May 15, 2026, spot at $14.12, ATM IV 71.98%, IV rank 14.73%, expected move 20.64%. The bear put spread on RUN 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 RUN specifically: RUN IV at 71.98% is on the cheap side of its 1-year range, which favors premium-buying structures like a RUN bear put spread, with a market-implied 1-standard-deviation move of approximately 20.64% (roughly $2.91 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 RUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on RUN should anchor to the underlying notional of $14.12 per share and to the trader's directional view on RUN stock.

RUN bear put spread setup

The RUN 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 RUN near $14.12, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RUN 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 RUN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$14.00	$0.99
Sell 1	Put	$13.00	$0.60

RUN bear put spread risk and reward

Net Premium / Debit: -$39.50
Max Profit (per contract): $60.50
Max Loss (per contract): -$39.50
Breakeven(s): $13.61
Risk / Reward Ratio: 1.532

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.

RUN bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on RUN. 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%	+$60.50
$3.13	-77.8%	+$60.50
$6.25	-55.7%	+$60.50
$9.37	-33.6%	+$60.50
$12.49	-11.5%	+$60.50
$15.61	+10.6%	-$39.50
$18.74	+32.7%	-$39.50
$21.86	+54.8%	-$39.50
$24.98	+76.9%	-$39.50
$28.10	+99.0%	-$39.50

When traders use bear put spread on RUN

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

RUN thesis for this bear put spread

The market-implied 1-standard-deviation range for RUN extends from approximately $11.21 on the downside to $17.03 on the upside. A RUN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on RUN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current RUN IV rank near 14.73% 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 RUN at 71.98%. As a Energy name, RUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RUN-specific events.

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

Frequently asked questions

What is a bear put spread on RUN?: A bear put spread on RUN is the bear put spread strategy applied to RUN (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 RUN stock trading near $14.12, the strikes shown on this page are snapped to the nearest listed RUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RUN 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 RUN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 71.98%), the computed maximum profit is $60.50 per contract and the computed maximum loss is -$39.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RUN bear put spread?: The breakeven for the RUN bear put spread priced on this page is roughly $13.61 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 RUN market-implied 1-standard-deviation expected move is approximately 20.64%; 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 RUN?: Bear put spreads on RUN reduce the cost of a bearish RUN 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 RUN implied volatility affect this bear put spread?: RUN ATM IV is at 71.98% with IV rank near 14.73%, 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.