SACH Bear Put Spread Strategy
SACH (Sachem Capital Corp.), in the Real Estate sector, (REIT - Mortgage industry), listed on AMEX.
Sachem Capital Corp. operates as a real estate finance company. The company is involved in the originating, underwriting, funding, servicing, and managing a portfolio of short-term loans secured by first mortgage liens on real property located primarily in Northeastern United States and Florida. It offers loans to real estate investors and owners to fund their acquisition, renovation, rehabilitation, development, and/or improvement of residential or commercial properties. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal income taxes if it distributes at least 90% of its taxable income each year to its stockholders. Sachem Capital Corp. was founded in 2010 and is based in Branford, Connecticut.
SACH (Sachem Capital Corp.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $50.4M, a trailing P/E of 7.81, a beta of 1.10 versus the broader market, a 52-week range of 0.801-1.35, average daily share volume of 159K, a public-listing history dating back to 2017, approximately 28 full-time employees. These structural characteristics shape how SACH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.10 places SACH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 7.81 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SACH 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 SACH?
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 SACH snapshot
As of May 15, 2026, spot at $1.03, ATM IV 21.90%, IV rank 1.02%, expected move 6.28%. The bear put spread on SACH 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 SACH specifically: SACH IV at 21.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a SACH bear put spread, with a market-implied 1-standard-deviation move of approximately 6.28% (roughly $0.06 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 SACH expiries trade a higher absolute premium for lower per-day decay. Position sizing on SACH should anchor to the underlying notional of $1.03 per share and to the trader's directional view on SACH stock.
SACH bear put spread setup
The SACH 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 SACH near $1.03, the first option leg uses a $1.03 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SACH 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 SACH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $1.03 | N/A |
| Sell 1 | Put | $0.98 | N/A |
SACH 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.
SACH bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on SACH. 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 SACH
Bear put spreads on SACH reduce the cost of a bearish SACH stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
SACH thesis for this bear put spread
The market-implied 1-standard-deviation range for SACH extends from approximately $0.97 on the downside to $1.09 on the upside. A SACH bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on SACH, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SACH IV rank near 1.02% 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 SACH at 21.90%. As a Real Estate name, SACH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SACH-specific events.
SACH 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. SACH positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SACH alongside the broader basket even when SACH-specific fundamentals are unchanged. Long-premium structures like a bear put spread on SACH 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 SACH chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on SACH?
- A bear put spread on SACH is the bear put spread strategy applied to SACH (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 SACH stock trading near $1.03, the strikes shown on this page are snapped to the nearest listed SACH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SACH 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 SACH bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 21.90%), 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 SACH bear put spread?
- The breakeven for the SACH 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 SACH market-implied 1-standard-deviation expected move is approximately 6.28%; 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 SACH?
- Bear put spreads on SACH reduce the cost of a bearish SACH 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 SACH implied volatility affect this bear put spread?
- SACH ATM IV is at 21.90% with IV rank near 1.02%, 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.