TPC Bear Put Spread Strategy
TPC (Tutor Perini Corporation), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Tutor Perini Corporation, a construction company, provides diversified general contracting, construction management, and design-build services to private customers and public agencies worldwide. It operates through three segments: Civil, Building, and Specialty Contractors. The Civil segment engages in the public works construction and the replacement and reconstruction of infrastructure, construction and rehabilitation of highways, bridges, tunnels, mass-transit systems, military defense facilities, and water management and wastewater treatment facilities. This segment also provides drilling, foundation, and excavation support for shoring, bridges, piers, roads, and highway projects. The Building segment offers services in various specialized building markets, including hospitality and gaming, transportation, health care, commercial offices, government facilities, sports and entertainment, education, correctional facilities, biotech, pharmaceutical, and industrial and technology. The Specialty Contractors segment provides electrical, mechanical, plumbing, and fire protection systems, as well as heating, ventilation, and air conditioning services (HVAC) for the industrial, commercial, hospitality and gaming, and mass-transit end markets.
TPC (Tutor Perini Corporation) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $4.26B, a trailing P/E of 54.42, a beta of 2.19 versus the broader market, a 52-week range of 34.32-100, average daily share volume of 610K, a public-listing history dating back to 1973, approximately 8K full-time employees. These structural characteristics shape how TPC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.19 indicates TPC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 54.42 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. TPC 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 TPC?
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 TPC snapshot
As of May 15, 2026, spot at $79.24, ATM IV 47.50%, IV rank 22.99%, expected move 13.62%. The bear put spread on TPC 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 63-day expiry.
Why this bear put spread structure on TPC specifically: TPC IV at 47.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a TPC bear put spread, with a market-implied 1-standard-deviation move of approximately 13.62% (roughly $10.79 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TPC expiries trade a higher absolute premium for lower per-day decay. Position sizing on TPC should anchor to the underlying notional of $79.24 per share and to the trader's directional view on TPC stock.
TPC bear put spread setup
The TPC 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 TPC near $79.24, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TPC chain at a 63-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 TPC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $80.00 | $6.05 |
| Sell 1 | Put | $75.00 | $3.80 |
TPC bear put spread risk and reward
- Net Premium / Debit
- -$225.00
- Max Profit (per contract)
- $275.00
- Max Loss (per contract)
- -$225.00
- Breakeven(s)
- $77.75
- Risk / Reward Ratio
- 1.222
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.
TPC bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on TPC. 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% | +$275.00 |
| $17.53 | -77.9% | +$275.00 |
| $35.05 | -55.8% | +$275.00 |
| $52.57 | -33.7% | +$275.00 |
| $70.09 | -11.6% | +$275.00 |
| $87.61 | +10.6% | -$225.00 |
| $105.13 | +32.7% | -$225.00 |
| $122.65 | +54.8% | -$225.00 |
| $140.16 | +76.9% | -$225.00 |
| $157.68 | +99.0% | -$225.00 |
When traders use bear put spread on TPC
Bear put spreads on TPC reduce the cost of a bearish TPC stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
TPC thesis for this bear put spread
The market-implied 1-standard-deviation range for TPC extends from approximately $68.45 on the downside to $90.03 on the upside. A TPC bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on TPC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TPC IV rank near 22.99% 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 TPC at 47.50%. As a Industrials name, TPC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TPC-specific events.
TPC 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. TPC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TPC alongside the broader basket even when TPC-specific fundamentals are unchanged. Long-premium structures like a bear put spread on TPC 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 TPC chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on TPC?
- A bear put spread on TPC is the bear put spread strategy applied to TPC (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 TPC stock trading near $79.24, the strikes shown on this page are snapped to the nearest listed TPC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TPC 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 TPC bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 47.50%), the computed maximum profit is $275.00 per contract and the computed maximum loss is -$225.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TPC bear put spread?
- The breakeven for the TPC bear put spread priced on this page is roughly $77.75 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 TPC market-implied 1-standard-deviation expected move is approximately 13.62%; 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 TPC?
- Bear put spreads on TPC reduce the cost of a bearish TPC 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 TPC implied volatility affect this bear put spread?
- TPC ATM IV is at 47.50% with IV rank near 22.99%, 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.