SPRU Bear Put Spread Strategy
SPRU (Spruce Power Holding Corporation), in the Energy sector, (Solar industry), listed on NYSE.
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SPRU (Spruce Power Holding Corporation) trades in the Energy sector, specifically Solar, with a market capitalization of approximately $49.2M, a beta of 1.15 versus the broader market, a 52-week range of 1.13-6.75, average daily share volume of 51K, a public-listing history dating back to 2019, approximately 165 full-time employees. These structural characteristics shape how SPRU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.15 places SPRU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bear put spread on SPRU?
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 SPRU snapshot
As of June 29, 2026, spot at $2.67, ATM IV 96.10%, IV rank 29.87%, expected move 27.55%. The bear put spread on SPRU 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 18-day expiry.
Why this bear put spread structure on SPRU specifically: SPRU IV at 96.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a SPRU bear put spread, with a market-implied 1-standard-deviation move of approximately 27.55% (roughly $0.74 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SPRU expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPRU should anchor to the underlying notional of $2.67 per share and to the trader's directional view on SPRU stock.
SPRU bear put spread setup
The SPRU 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 SPRU near $2.67, the first option leg uses a $2.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPRU chain at a 18-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 SPRU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $2.67 | N/A |
| Sell 1 | Put | $2.54 | N/A |
SPRU 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.
SPRU bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on SPRU. 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 SPRU
Bear put spreads on SPRU reduce the cost of a bearish SPRU stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
SPRU thesis for this bear put spread
The market-implied 1-standard-deviation range for SPRU extends from approximately $1.93 on the downside to $3.41 on the upside. A SPRU bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on SPRU, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SPRU IV rank near 29.87% 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 SPRU at 96.10%. As a Energy name, SPRU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPRU-specific events.
SPRU 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. SPRU positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SPRU alongside the broader basket even when SPRU-specific fundamentals are unchanged. Long-premium structures like a bear put spread on SPRU 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 SPRU chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on SPRU?
- A bear put spread on SPRU is the bear put spread strategy applied to SPRU (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 SPRU stock trading near $2.67, the strikes shown on this page are snapped to the nearest listed SPRU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SPRU 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 SPRU bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 96.10%), 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 SPRU bear put spread?
- The breakeven for the SPRU 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 SPRU market-implied 1-standard-deviation expected move is approximately 27.55%; 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 SPRU?
- Bear put spreads on SPRU reduce the cost of a bearish SPRU 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 SPRU implied volatility affect this bear put spread?
- SPRU ATM IV is at 96.10% with IV rank near 29.87%, 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.