SPAI Bear Put Spread Strategy

SPAI (Safe Pro Group Inc. Common Stock), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.

Safe Pro Group Inc. manufactures and sells personal protective gear and ballistic protection products in the United States. The company offers explosive ordinance disposal and unexploded ordinance disposal products; ballistic vests; and body armor, helmets, and ballistic blankets, as well as aerial managed services (drones) for the inspection of radio towers and power grids. It also develops artificial intelligence-powered detection and data analysis and reporting tools for hyper-scalable and cloud-based processing of drone imagery. In addition, the company provides drone as a responder (DaaR) solutions for public safety, emergency management, security, critical infrastructure, and other incident response; critical infrastructure inspection utilizing visual and/or IR/ thermal sensors; data capture, analytics, and processing by machine learning and artificial intelligence to provide data-driven insights and reporting; aerial mapping of ground-based infrastructure and other targeted assets; UAS-related training and consultation services; and other customized and specialized services. It serves critical infrastructure, insurance, public utilities, and telecommunication network operators; state and local/municipal governments and agencies; and police, fire, and other public safety organizations. The company was formerly known as Cybernate Corp. and changed its name to Safe Pro Group Inc. in July 2022.

SPAI (Safe Pro Group Inc. Common Stock) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $70.9M, a beta of 2.99 versus the broader market, a 52-week range of 2.39-9.16, average daily share volume of 327K, a public-listing history dating back to 2023, approximately 11 full-time employees. These structural characteristics shape how SPAI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.99 indicates SPAI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a bear put spread on SPAI?

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 SPAI snapshot

As of May 15, 2026, spot at $4.34, ATM IV 215.80%, expected move 61.87%. The bear put spread on SPAI 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 SPAI specifically: IV rank is unavailable in the current snapshot, so regime-based timing for SPAI is inferred from ATM IV at 215.80% alone, with a market-implied 1-standard-deviation move of approximately 61.87% (roughly $2.69 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 SPAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPAI should anchor to the underlying notional of $4.34 per share and to the trader's directional view on SPAI stock.

SPAI bear put spread setup

The SPAI 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 SPAI near $4.34, the first option leg uses a $4.34 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPAI 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 SPAI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$4.34	N/A
Sell 1	Put	$4.12	N/A

SPAI 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.

SPAI bear put spread payoff curve

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

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

SPAI thesis for this bear put spread

The market-implied 1-standard-deviation range for SPAI extends from approximately $1.65 on the downside to $7.03 on the upside. A SPAI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on SPAI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. As a Industrials name, SPAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPAI-specific events.

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

Frequently asked questions

What is a bear put spread on SPAI?: A bear put spread on SPAI is the bear put spread strategy applied to SPAI (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 SPAI stock trading near $4.34, the strikes shown on this page are snapped to the nearest listed SPAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SPAI 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 SPAI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 215.80%), 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 SPAI bear put spread?: The breakeven for the SPAI 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 SPAI market-implied 1-standard-deviation expected move is approximately 61.87%; 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 SPAI?: Bear put spreads on SPAI reduce the cost of a bearish SPAI 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 SPAI implied volatility affect this bear put spread?: Current SPAI ATM IV is 215.80%; IV rank context is unavailable in the current snapshot.