How are TMUS 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 TMUS bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 29.04%), the computed maximum profit is $632.50 per contract and the computed maximum loss is -$367.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TMUS bear put spread?

The breakeven for the TMUS bear put spread priced on this page is roughly $181.33 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 TMUS market-implied 1-standard-deviation expected move is approximately 8.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

TMUS ATM IV is at 29.04% with IV rank near 45.94%, 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.

TMUS Bear Put Spread Strategy

TMUS (T-Mobile US, Inc.), in the Communication Services sector, (Telecommunications Services industry), listed on NASDAQ.

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to 108.7 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, wearables, and tablets and other mobile communication devices, as well as wireless devices and accessories. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. It also sells its devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. As of December 31, 2021, it operated approximately 102,000 macro cell and 41,000 small cell/distributed antenna system sites.

TMUS (T-Mobile US, Inc.) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $205.92B, a trailing P/E of 19.86, a beta of 0.32 versus the broader market, a 52-week range of 181.36-261.56, average daily share volume of 5.8M, a public-listing history dating back to 2007, approximately 70K full-time employees. These structural characteristics shape how TMUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.32 indicates TMUS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TMUS 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 TMUS?

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 TMUS snapshot

As of May 15, 2026, spot at $185.34, ATM IV 29.04%, IV rank 45.94%, expected move 8.32%. The bear put spread on TMUS 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 TMUS specifically: TMUS IV at 29.04% 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 8.32% (roughly $15.43 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 TMUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMUS should anchor to the underlying notional of $185.34 per share and to the trader's directional view on TMUS stock.

TMUS bear put spread setup

The TMUS 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 TMUS near $185.34, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMUS 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 TMUS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$185.00	$5.90
Sell 1	Put	$175.00	$2.23

TMUS bear put spread risk and reward

Net Premium / Debit: -$367.50
Max Profit (per contract): $632.50
Max Loss (per contract): -$367.50
Breakeven(s): $181.33
Risk / Reward Ratio: 1.721

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.

TMUS bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on TMUS. 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%	+$632.50
$40.99	-77.9%	+$632.50
$81.97	-55.8%	+$632.50
$122.95	-33.7%	+$632.50
$163.92	-11.6%	+$632.50
$204.90	+10.6%	-$367.50
$245.88	+32.7%	-$367.50
$286.86	+54.8%	-$367.50
$327.84	+76.9%	-$367.50
$368.82	+99.0%	-$367.50

When traders use bear put spread on TMUS

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

TMUS thesis for this bear put spread

The market-implied 1-standard-deviation range for TMUS extends from approximately $169.91 on the downside to $200.77 on the upside. A TMUS bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on TMUS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TMUS IV rank near 45.94% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on TMUS should anchor more to the directional view and the expected-move geometry. As a Communication Services name, TMUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMUS-specific events.

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

Frequently asked questions

What is a bear put spread on TMUS?: A bear put spread on TMUS is the bear put spread strategy applied to TMUS (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 TMUS stock trading near $185.34, the strikes shown on this page are snapped to the nearest listed TMUS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TMUS 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 TMUS bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 29.04%), the computed maximum profit is $632.50 per contract and the computed maximum loss is -$367.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TMUS bear put spread?: The breakeven for the TMUS bear put spread priced on this page is roughly $181.33 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 TMUS market-implied 1-standard-deviation expected move is approximately 8.32%; 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 TMUS?: Bear put spreads on TMUS reduce the cost of a bearish TMUS 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 TMUS implied volatility affect this bear put spread?: TMUS ATM IV is at 29.04% with IV rank near 45.94%, 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.