How are TGT 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 TGT bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 43.44%), the computed maximum profit is $352.50 per contract and the computed maximum loss is -$247.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TGT bear put spread?

The breakeven for the TGT bear put spread priced on this page is roughly $118.53 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 TGT market-implied 1-standard-deviation expected move is approximately 12.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

TGT ATM IV is at 43.44% with IV rank near 53.84%, 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.

TGT Bear Put Spread Strategy

TGT (Target Corporation), in the Consumer Defensive sector, (Discount Stores industry), listed on NYSE.

Target Corporation operates as a general merchandise retailer in the United States. The company offers food assortments, including perishables, dry grocery, dairy, and frozen items; apparel, accessories, home décor products, electronics, toys, seasonal offerings, food, and other merchandise; and beauty and household essentials. It also provides in-store amenities, such as Target Café, Target Optical, Starbucks, and other food service offerings. The company sells its products through its stores; and digital channels, including Target.com. As of March 09, 2022, the company operated approximately 2,000 stores. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.

TGT (Target Corporation) trades in the Consumer Defensive sector, specifically Discount Stores, with a market capitalization of approximately $55.01B, a trailing P/E of 14.85, a beta of 1.01 versus the broader market, a 52-week range of 83.44-133.1, average daily share volume of 5.6M, a public-listing history dating back to 1967, approximately 440K full-time employees. These structural characteristics shape how TGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places TGT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TGT 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 TGT?

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 TGT snapshot

As of May 15, 2026, spot at $120.71, ATM IV 43.44%, IV rank 53.84%, expected move 12.46%. The bear put spread on TGT 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 28-day expiry.

Why this bear put spread structure on TGT specifically: TGT IV at 43.44% 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 12.46% (roughly $15.03 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TGT should anchor to the underlying notional of $120.71 per share and to the trader's directional view on TGT stock.

TGT bear put spread setup

The TGT 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 TGT near $120.71, the first option leg uses a $121.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TGT chain at a 28-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 TGT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$121.00	$5.83
Sell 1	Put	$115.00	$3.35

TGT bear put spread risk and reward

Net Premium / Debit: -$247.50
Max Profit (per contract): $352.50
Max Loss (per contract): -$247.50
Breakeven(s): $118.53
Risk / Reward Ratio: 1.424

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.

TGT bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on TGT. 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%	+$352.50
$26.70	-77.9%	+$352.50
$53.39	-55.8%	+$352.50
$80.08	-33.7%	+$352.50
$106.76	-11.6%	+$352.50
$133.45	+10.6%	-$247.50
$160.14	+32.7%	-$247.50
$186.83	+54.8%	-$247.50
$213.52	+76.9%	-$247.50
$240.21	+99.0%	-$247.50

When traders use bear put spread on TGT

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

TGT thesis for this bear put spread

The market-implied 1-standard-deviation range for TGT extends from approximately $105.68 on the downside to $135.74 on the upside. A TGT bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on TGT, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TGT IV rank near 53.84% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on TGT should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, TGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TGT-specific events.

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

Frequently asked questions

What is a bear put spread on TGT?: A bear put spread on TGT is the bear put spread strategy applied to TGT (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 TGT stock trading near $120.71, the strikes shown on this page are snapped to the nearest listed TGT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TGT 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 TGT bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 43.44%), the computed maximum profit is $352.50 per contract and the computed maximum loss is -$247.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TGT bear put spread?: The breakeven for the TGT bear put spread priced on this page is roughly $118.53 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 TGT market-implied 1-standard-deviation expected move is approximately 12.46%; 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 TGT?: Bear put spreads on TGT reduce the cost of a bearish TGT 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 TGT implied volatility affect this bear put spread?: TGT ATM IV is at 43.44% with IV rank near 53.84%, 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.