SIGI Bear Put Spread Strategy
SIGI (Selective Insurance Group, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NASDAQ.
Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. It operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. The company offers property insurance products, which covers the financial consequences of accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss; and casualty insurance products that covers the financial consequences of employee injuries in the course of employment, and bodily injury and/or property damage to a third party, as well as flood insurance products. It also invests in fixed income investments and commercial mortgage loans, as well as equity securities and alternative investment portfolio. The company offers its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents. Selective Insurance Group, Inc. was founded in 1926 and is headquartered in Branchville, New Jersey.
SIGI (Selective Insurance Group, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $5.10B, a trailing P/E of 11.35, a beta of 0.31 versus the broader market, a 52-week range of 71.75-91.63, average daily share volume of 565K, a public-listing history dating back to 1980, approximately 3K full-time employees. These structural characteristics shape how SIGI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.31 indicates SIGI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.35 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SIGI 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 SIGI?
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 SIGI snapshot
As of May 15, 2026, spot at $87.88, ATM IV 18.60%, IV rank 0.24%, expected move 5.33%. The bear put spread on SIGI 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 SIGI specifically: SIGI IV at 18.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a SIGI bear put spread, with a market-implied 1-standard-deviation move of approximately 5.33% (roughly $4.69 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 SIGI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SIGI should anchor to the underlying notional of $87.88 per share and to the trader's directional view on SIGI stock.
SIGI bear put spread setup
The SIGI 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 SIGI near $87.88, the first option leg uses a $87.88 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SIGI 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 SIGI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $87.88 | N/A |
| Sell 1 | Put | $83.49 | N/A |
SIGI 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.
SIGI bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on SIGI. 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 SIGI
Bear put spreads on SIGI reduce the cost of a bearish SIGI stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
SIGI thesis for this bear put spread
The market-implied 1-standard-deviation range for SIGI extends from approximately $83.19 on the downside to $92.57 on the upside. A SIGI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on SIGI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SIGI IV rank near 0.24% 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 SIGI at 18.60%. As a Financial Services name, SIGI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SIGI-specific events.
SIGI 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. SIGI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SIGI alongside the broader basket even when SIGI-specific fundamentals are unchanged. Long-premium structures like a bear put spread on SIGI 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 SIGI chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on SIGI?
- A bear put spread on SIGI is the bear put spread strategy applied to SIGI (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 SIGI stock trading near $87.88, the strikes shown on this page are snapped to the nearest listed SIGI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SIGI 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 SIGI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 18.60%), 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 SIGI bear put spread?
- The breakeven for the SIGI 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 SIGI market-implied 1-standard-deviation expected move is approximately 5.33%; 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 SIGI?
- Bear put spreads on SIGI reduce the cost of a bearish SIGI 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 SIGI implied volatility affect this bear put spread?
- SIGI ATM IV is at 18.60% with IV rank near 0.24%, 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.