How are SG 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 SG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 72.43%), the computed maximum profit is $27.50 per contract and the computed maximum loss is -$22.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SG bear put spread?

The breakeven for the SG bear put spread priced on this page is roughly $7.78 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 SG market-implied 1-standard-deviation expected move is approximately 20.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

SG ATM IV is at 72.43% with IV rank near 11.24%, 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.

SG Bear Put Spread Strategy

SG (Sweetgreen, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NYSE.

Sweetgreen, Inc., together with its subsidiaries, develops and operates fast-casual restaurants serving healthy foods prepared from seasonal and organic ingredients. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that can be redeemed in its restaurants. As of September 26, 2021, it owned and operated 140 restaurants in 13 states and Washington, D.C. The company was founded in 2006 and is headquartered in Los Angeles, California.

SG (Sweetgreen, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $781.9M, a trailing P/E of 46.52, a beta of 2.03 versus the broader market, a 52-week range of 4.49-16.7, average daily share volume of 4.6M, a public-listing history dating back to 2021, approximately 6K full-time employees. These structural characteristics shape how SG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.03 indicates SG 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 46.52 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a bear put spread on SG?

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 SG snapshot

As of May 15, 2026, spot at $8.02, ATM IV 72.43%, IV rank 11.24%, expected move 20.76%. The bear put spread on SG 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 SG specifically: SG IV at 72.43% is on the cheap side of its 1-year range, which favors premium-buying structures like a SG bear put spread, with a market-implied 1-standard-deviation move of approximately 20.76% (roughly $1.67 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 SG expiries trade a higher absolute premium for lower per-day decay. Position sizing on SG should anchor to the underlying notional of $8.02 per share and to the trader's directional view on SG stock.

SG bear put spread setup

The SG 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 SG near $8.02, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SG 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 SG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$8.00	$0.63
Sell 1	Put	$7.50	$0.40

SG bear put spread risk and reward

Net Premium / Debit: -$22.50
Max Profit (per contract): $27.50
Max Loss (per contract): -$22.50
Breakeven(s): $7.78
Risk / Reward Ratio: 1.222

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.

SG bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on SG. 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%	+$27.50
$1.78	-77.8%	+$27.50
$3.55	-55.7%	+$27.50
$5.33	-33.6%	+$27.50
$7.10	-11.5%	+$27.50
$8.87	+10.6%	-$22.50
$10.64	+32.7%	-$22.50
$12.42	+54.8%	-$22.50
$14.19	+76.9%	-$22.50
$15.96	+99.0%	-$22.50

When traders use bear put spread on SG

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

SG thesis for this bear put spread

The market-implied 1-standard-deviation range for SG extends from approximately $6.35 on the downside to $9.69 on the upside. A SG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on SG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SG IV rank near 11.24% 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 SG at 72.43%. As a Consumer Cyclical name, SG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SG-specific events.

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

Frequently asked questions

What is a bear put spread on SG?: A bear put spread on SG is the bear put spread strategy applied to SG (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 SG stock trading near $8.02, the strikes shown on this page are snapped to the nearest listed SG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SG 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 SG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 72.43%), the computed maximum profit is $27.50 per contract and the computed maximum loss is -$22.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SG bear put spread?: The breakeven for the SG bear put spread priced on this page is roughly $7.78 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 SG market-implied 1-standard-deviation expected move is approximately 20.76%; 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 SG?: Bear put spreads on SG reduce the cost of a bearish SG 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 SG implied volatility affect this bear put spread?: SG ATM IV is at 72.43% with IV rank near 11.24%, 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.