TMP Bear Put Spread Strategy
TMP (Tompkins Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on AMEX.
Tompkins Financial Corporation functions as a financial holding entity, offering a comprehensive array of services that include commercial and retail banking, leasing, trust and investment management, financial planning, wealth management, and insurance solutions. Its operations are strategically divided into three main segments: Banking, Insurance, and Wealth Management. The corporation provides a diverse selection of deposit products, such as checking, savings, and time accounts, alongside IRA options, and specialized brokered, reciprocal, and municipal money market deposits. It also extends a wide range of lending solutions. For businesses, these include financing for real estate, construction, and equipment, accounts receivable funding, and commercial leasing. For individuals and businesses alike, it offers residential mortgages, personal loans, home equity loans, commercial and industrial loans, commercial real estate loans, and agricultural loans.
TMP (Tompkins Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.35B, a trailing P/E of 8.01, a beta of 0.74 versus the broader market, a 52-week range of 61.21-94.33, average daily share volume of 71K, a public-listing history dating back to 1986, approximately 941 full-time employees. These structural characteristics shape how TMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places TMP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 8.01 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. TMP 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 TMP?
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 TMP snapshot
As of June 30, 2026, spot at $94.32, ATM IV 60.10%, IV rank 9.24%, expected move 17.23%. The bear put spread on TMP 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 17-day expiry.
Why this bear put spread structure on TMP specifically: TMP IV at 60.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a TMP bear put spread, with a market-implied 1-standard-deviation move of approximately 17.23% (roughly $16.25 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMP should anchor to the underlying notional of $94.32 per share and to the trader's directional view on TMP stock.
TMP bear put spread setup
The TMP 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 TMP near $94.32, the first option leg uses a $94.32 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMP chain at a 17-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 TMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $94.32 | N/A |
| Sell 1 | Put | $89.60 | N/A |
TMP 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.
TMP bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on TMP. 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 TMP
Bear put spreads on TMP reduce the cost of a bearish TMP stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
TMP thesis for this bear put spread
The market-implied 1-standard-deviation range for TMP extends from approximately $78.07 on the downside to $110.57 on the upside. A TMP bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on TMP, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TMP IV rank near 9.24% 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 TMP at 60.10%. As a Financial Services name, TMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMP-specific events.
TMP 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. TMP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMP alongside the broader basket even when TMP-specific fundamentals are unchanged. Long-premium structures like a bear put spread on TMP 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 TMP chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on TMP?
- A bear put spread on TMP is the bear put spread strategy applied to TMP (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 TMP stock trading near $94.32, the strikes shown on this page are snapped to the nearest listed TMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMP 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 TMP bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 60.10%), 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 TMP bear put spread?
- The breakeven for the TMP 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 TMP market-implied 1-standard-deviation expected move is approximately 17.23%; 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 TMP?
- Bear put spreads on TMP reduce the cost of a bearish TMP 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 TMP implied volatility affect this bear put spread?
- TMP ATM IV is at 60.10% with IV rank near 9.24%, 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.