How are SMMT 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 SMMT bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 95.37%), the computed maximum profit is $42.50 per contract and the computed maximum loss is -$57.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SMMT bear put spread?

The breakeven for the SMMT bear put spread priced on this page is roughly $14.43 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 SMMT market-implied 1-standard-deviation expected move is approximately 27.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

SMMT ATM IV is at 95.37% with IV rank near 37.05%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

SMMT Bear Put Spread Strategy

SMMT (Summit Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Summit Therapeutics Inc. is a biopharmaceutical firm dedicated to discovering, developing, and commercializing therapeutic solutions, primarily targeting infectious diseases across the United States and Latin America. The company's clinical development pipeline is heavily concentrated on therapies for Clostridioides difficile infection (CDI). Its flagship product candidate, ridinilazole, is an orally administered small molecule antibiotic currently advancing through Phase III clinical trials as a treatment for CDI. Beyond its lead asset, Summit Therapeutics is also progressing SMT-738, designed to combat multidrug-resistant infections, notably carbapenem-resistant Enterobacteriaceae (CRE). Additionally, its DDS-04 series represents a potential therapeutic avenue for various infections caused by the Enterobacteriaceae family of bacteria. Established in 2003, the company maintains its headquarters in Cambridge, Massachusetts.

SMMT (Summit Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $10.87B, a beta of -1.31 versus the broader market, a 52-week range of 12.55-30.98, average daily share volume of 5.2M, a public-listing history dating back to 2015, approximately 159 full-time employees. These structural characteristics shape how SMMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -1.31 indicates SMMT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a bear put spread on SMMT?

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 SMMT snapshot

As of June 30, 2026, spot at $14.51, ATM IV 95.37%, IV rank 37.05%, expected move 27.34%. The bear put spread on SMMT 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 31-day expiry.

Why this bear put spread structure on SMMT specifically: SMMT IV at 95.37% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 27.34% (roughly $3.97 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SMMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SMMT should anchor to the underlying notional of $14.51 per share and to the trader's directional view on SMMT stock.

SMMT bear put spread setup

The SMMT 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 SMMT near $14.51, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SMMT chain at a 31-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 SMMT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$15.00	$1.88
Sell 1	Put	$14.00	$1.30

SMMT bear put spread risk and reward

Net Premium / Debit: -$57.50
Max Profit (per contract): $42.50
Max Loss (per contract): -$57.50
Breakeven(s): $14.43
Risk / Reward Ratio: 0.739

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.

SMMT bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on SMMT. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$42.50
$3.22	-77.8%	+$42.50
$6.42	-55.7%	+$42.50
$9.63	-33.6%	+$42.50
$12.84	-11.5%	+$42.50
$16.05	+10.6%	-$57.50
$19.25	+32.7%	-$57.50
$22.46	+54.8%	-$57.50
$25.67	+76.9%	-$57.50
$28.87	+99.0%	-$57.50

When traders use bear put spread on SMMT

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

SMMT thesis for this bear put spread

The market-implied 1-standard-deviation range for SMMT extends from approximately $10.54 on the downside to $18.48 on the upside. A SMMT bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on SMMT, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SMMT IV rank near 37.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on SMMT should anchor more to the directional view and the expected-move geometry. As a Healthcare name, SMMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SMMT-specific events.

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

Frequently asked questions

What is a bear put spread on SMMT?: A bear put spread on SMMT is the bear put spread strategy applied to SMMT (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 SMMT stock trading near $14.51, the strikes shown on this page are snapped to the nearest listed SMMT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SMMT 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 SMMT bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 95.37%), the computed maximum profit is $42.50 per contract and the computed maximum loss is -$57.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SMMT bear put spread?: The breakeven for the SMMT bear put spread priced on this page is roughly $14.43 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 SMMT market-implied 1-standard-deviation expected move is approximately 27.34%; 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 SMMT?: Bear put spreads on SMMT reduce the cost of a bearish SMMT 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 SMMT implied volatility affect this bear put spread?: SMMT ATM IV is at 95.37% with IV rank near 37.05%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.