WHD Bear Put Spread Strategy
WHD (Cactus, Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Cactus, Inc. designs, manufactures, sells, and rents a range of wellheads and pressure control equipment in the United States, Australia, China, and the Kingdom of Saudi Arabia. The company's principal products include Cactus SafeDrill wellhead systems, Cactus SafeLink monobore, SafeClamp, and SafeInject systems, as well as frac stacks, zipper manifolds, and production trees. It also provides field services, such as 24-hour service crews to assist with the installation, maintenance, repair, and safe handling of the wellhead and pressure control equipment; and repair and refurbishment services. The company sells or rents its products for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells. In addition, it operates 15 service centers in the United States, as well as 3 service centers in Eastern Australia. Cactus, Inc. was founded in 2011 and is headquartered in Houston, Texas.
WHD (Cactus, Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $3.89B, a trailing P/E of 52.88, a beta of 1.38 versus the broader market, a 52-week range of 33.2-59.25, average daily share volume of 1.0M, a public-listing history dating back to 2018, approximately 2K full-time employees. These structural characteristics shape how WHD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.38 indicates WHD 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 52.88 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. WHD 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 WHD?
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 WHD snapshot
As of May 15, 2026, spot at $56.53, ATM IV 35.70%, IV rank 4.02%, expected move 10.23%. The bear put spread on WHD 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 WHD specifically: WHD IV at 35.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a WHD bear put spread, with a market-implied 1-standard-deviation move of approximately 10.23% (roughly $5.79 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 WHD expiries trade a higher absolute premium for lower per-day decay. Position sizing on WHD should anchor to the underlying notional of $56.53 per share and to the trader's directional view on WHD stock.
WHD bear put spread setup
The WHD 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 WHD near $56.53, the first option leg uses a $56.53 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WHD 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 WHD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $56.53 | N/A |
| Sell 1 | Put | $53.70 | N/A |
WHD 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.
WHD bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on WHD. 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 WHD
Bear put spreads on WHD reduce the cost of a bearish WHD stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
WHD thesis for this bear put spread
The market-implied 1-standard-deviation range for WHD extends from approximately $50.74 on the downside to $62.32 on the upside. A WHD bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on WHD, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current WHD IV rank near 4.02% 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 WHD at 35.70%. As a Energy name, WHD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WHD-specific events.
WHD 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. WHD positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WHD alongside the broader basket even when WHD-specific fundamentals are unchanged. Long-premium structures like a bear put spread on WHD 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 WHD chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on WHD?
- A bear put spread on WHD is the bear put spread strategy applied to WHD (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 WHD stock trading near $56.53, the strikes shown on this page are snapped to the nearest listed WHD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WHD 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 WHD bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 35.70%), 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 WHD bear put spread?
- The breakeven for the WHD 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 WHD market-implied 1-standard-deviation expected move is approximately 10.23%; 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 WHD?
- Bear put spreads on WHD reduce the cost of a bearish WHD 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 WHD implied volatility affect this bear put spread?
- WHD ATM IV is at 35.70% with IV rank near 4.02%, 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.