UFI Bear Put Spread Strategy
UFI (Unifi, Inc.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NYSE.
Unifi, Inc., together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in the United States, Brazil, China, and internationally. It operates in four segments: Polyester, Nylon, Brazil, and Asia. The Polyester segment offers partially oriented, textured, solution and package dyed, twisted, beamed, and draw wound yarns; and pre-consumer and post-consumer waste products, including plastic bottle flakes, polyester polymer, and staple fiber beads to other yarn manufacturers, and knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, home furnishings, automotive, industrial, and other end-use markets. The Nylon segment provides virgin or recycled textured, solution dyed, and spandex covered yarns to knitters and weavers that produce fabric primarily for the apparel, hosiery, medical markets. The Brazil segment manufactures and sells polyester-based products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets. The Asia segment primarily sells polyester-based products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets.
UFI (Unifi, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $76.4M, a beta of 0.72 versus the broader market, a 52-week range of 2.96-5.42, average daily share volume of 32K, a public-listing history dating back to 1980, approximately 3K full-time employees. These structural characteristics shape how UFI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places UFI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bear put spread on UFI?
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 UFI snapshot
As of May 15, 2026, spot at $4.15, ATM IV 67.40%, IV rank 12.57%, expected move 19.32%. The bear put spread on UFI 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 UFI specifically: UFI IV at 67.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a UFI bear put spread, with a market-implied 1-standard-deviation move of approximately 19.32% (roughly $0.80 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 UFI expiries trade a higher absolute premium for lower per-day decay. Position sizing on UFI should anchor to the underlying notional of $4.15 per share and to the trader's directional view on UFI stock.
UFI bear put spread setup
The UFI 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 UFI near $4.15, the first option leg uses a $4.15 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UFI 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 UFI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $4.15 | N/A |
| Sell 1 | Put | $3.94 | N/A |
UFI 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.
UFI bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on UFI. 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 UFI
Bear put spreads on UFI reduce the cost of a bearish UFI stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
UFI thesis for this bear put spread
The market-implied 1-standard-deviation range for UFI extends from approximately $3.35 on the downside to $4.95 on the upside. A UFI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on UFI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current UFI IV rank near 12.57% 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 UFI at 67.40%. As a Consumer Cyclical name, UFI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UFI-specific events.
UFI 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. UFI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UFI alongside the broader basket even when UFI-specific fundamentals are unchanged. Long-premium structures like a bear put spread on UFI 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 UFI chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on UFI?
- A bear put spread on UFI is the bear put spread strategy applied to UFI (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 UFI stock trading near $4.15, the strikes shown on this page are snapped to the nearest listed UFI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UFI 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 UFI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 67.40%), 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 UFI bear put spread?
- The breakeven for the UFI 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 UFI market-implied 1-standard-deviation expected move is approximately 19.32%; 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 UFI?
- Bear put spreads on UFI reduce the cost of a bearish UFI 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 UFI implied volatility affect this bear put spread?
- UFI ATM IV is at 67.40% with IV rank near 12.57%, 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.