TRNO Bear Put Spread Strategy
TRNO (Terreno Realty Corporation), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.
{Terreno Realty Corporation and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these condensed notes to the consolidated financial statements are unaudited. As of September 30, 2020, the Company owned 219 buildings aggregating approximately 13.1 million square feet, 22 improved land parcels consisting of approximately 85.0 acres and one property under redevelopment expected to contain approximately 0.2 million square feet upon completion. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.}
TRNO (Terreno Realty Corporation) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $7.05B, a trailing P/E of 16.39, a beta of 1.08 versus the broader market, a 52-week range of 53-67.55, average daily share volume of 595K, a public-listing history dating back to 2010, approximately 49 full-time employees. These structural characteristics shape how TRNO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.08 places TRNO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TRNO 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 TRNO?
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 TRNO snapshot
As of May 15, 2026, spot at $64.87, ATM IV 20.10%, IV rank 7.66%, expected move 5.76%. The bear put spread on TRNO 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 TRNO specifically: TRNO IV at 20.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a TRNO bear put spread, with a market-implied 1-standard-deviation move of approximately 5.76% (roughly $3.74 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 TRNO expiries trade a higher absolute premium for lower per-day decay. Position sizing on TRNO should anchor to the underlying notional of $64.87 per share and to the trader's directional view on TRNO stock.
TRNO bear put spread setup
The TRNO 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 TRNO near $64.87, the first option leg uses a $64.87 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TRNO 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 TRNO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $64.87 | N/A |
| Sell 1 | Put | $61.63 | N/A |
TRNO 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.
TRNO bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on TRNO. 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 TRNO
Bear put spreads on TRNO reduce the cost of a bearish TRNO stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
TRNO thesis for this bear put spread
The market-implied 1-standard-deviation range for TRNO extends from approximately $61.13 on the downside to $68.61 on the upside. A TRNO bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on TRNO, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TRNO IV rank near 7.66% 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 TRNO at 20.10%. As a Real Estate name, TRNO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TRNO-specific events.
TRNO 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. TRNO positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TRNO alongside the broader basket even when TRNO-specific fundamentals are unchanged. Long-premium structures like a bear put spread on TRNO 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 TRNO chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on TRNO?
- A bear put spread on TRNO is the bear put spread strategy applied to TRNO (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 TRNO stock trading near $64.87, the strikes shown on this page are snapped to the nearest listed TRNO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TRNO 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 TRNO bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 20.10%), 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 TRNO bear put spread?
- The breakeven for the TRNO 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 TRNO market-implied 1-standard-deviation expected move is approximately 5.76%; 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 TRNO?
- Bear put spreads on TRNO reduce the cost of a bearish TRNO 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 TRNO implied volatility affect this bear put spread?
- TRNO ATM IV is at 20.10% with IV rank near 7.66%, 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.