How are STNG 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 STNG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 43.50%), the computed maximum profit is $267.50 per contract and the computed maximum loss is -$232.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STNG bear put spread?

The breakeven for the STNG bear put spread priced on this page is roughly $80.18 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 STNG market-implied 1-standard-deviation expected move is approximately 12.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

STNG ATM IV is at 43.50% with IV rank near 42.62%, 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.

STNG Bear Put Spread Strategy

STNG (Scorpio Tankers Inc.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products in the shipping markets worldwide. As of March 18, 2022, the company's fleet consisted of 124 owned, finance leased, or bareboat chartered-in tankers, including 42 LR2, 6 LR1, 62 MR, and 14 Handymax with a weighted average age of approximately 6.2 years. Scorpio Tankers Inc. was incorporated in 2009 and is based in Monaco.

STNG (Scorpio Tankers Inc.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $4.25B, a trailing P/E of 7.72, a beta of -0.25 versus the broader market, a 52-week range of 37.96-87.39, average daily share volume of 1.3M, a public-listing history dating back to 2010, approximately 24 full-time employees. These structural characteristics shape how STNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.25 indicates STNG 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 7.72 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. STNG 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 STNG?

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 STNG snapshot

As of May 15, 2026, spot at $82.28, ATM IV 43.50%, IV rank 42.62%, expected move 12.47%. The bear put spread on STNG 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 STNG specifically: STNG IV at 43.50% 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 12.47% (roughly $10.26 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 STNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on STNG should anchor to the underlying notional of $82.28 per share and to the trader's directional view on STNG stock.

STNG bear put spread setup

The STNG 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 STNG near $82.28, the first option leg uses a $82.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STNG 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 STNG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$82.50	$4.70
Sell 1	Put	$77.50	$2.38

STNG bear put spread risk and reward

Net Premium / Debit: -$232.50
Max Profit (per contract): $267.50
Max Loss (per contract): -$232.50
Breakeven(s): $80.18
Risk / Reward Ratio: 1.151

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.

STNG bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on STNG. 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	-100.0%	+$267.50
$18.20	-77.9%	+$267.50
$36.39	-55.8%	+$267.50
$54.58	-33.7%	+$267.50
$72.78	-11.6%	+$267.50
$90.97	+10.6%	-$232.50
$109.16	+32.7%	-$232.50
$127.35	+54.8%	-$232.50
$145.54	+76.9%	-$232.50
$163.73	+99.0%	-$232.50

When traders use bear put spread on STNG

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

STNG thesis for this bear put spread

The market-implied 1-standard-deviation range for STNG extends from approximately $72.02 on the downside to $92.54 on the upside. A STNG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on STNG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current STNG IV rank near 42.62% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on STNG should anchor more to the directional view and the expected-move geometry. As a Energy name, STNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STNG-specific events.

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

Frequently asked questions

What is a bear put spread on STNG?: A bear put spread on STNG is the bear put spread strategy applied to STNG (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 STNG stock trading near $82.28, the strikes shown on this page are snapped to the nearest listed STNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are STNG 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 STNG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 43.50%), the computed maximum profit is $267.50 per contract and the computed maximum loss is -$232.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STNG bear put spread?: The breakeven for the STNG bear put spread priced on this page is roughly $80.18 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 STNG market-implied 1-standard-deviation expected move is approximately 12.47%; 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 STNG?: Bear put spreads on STNG reduce the cost of a bearish STNG 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 STNG implied volatility affect this bear put spread?: STNG ATM IV is at 43.50% with IV rank near 42.62%, 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.