How are XENE 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 XENE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $65.00 per contract and the computed maximum loss is -$185.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XENE bear put spread?

The breakeven for the XENE bear put spread priced on this page is roughly $53.15 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 XENE market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

XENE ATM IV is at 42.90% with IV rank near 5.83%, 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.

XENE Bear Put Spread Strategy

XENE (Xenon Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Xenon Pharmaceuticals Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutics to treat patients with neurological disorders in Canada. Its clinical development pipeline includes XEN496, A Kv7 potassium channel opener that is Phase III clinical trials for the treatment of KCNQ2 developmental and epilepsy encephalopathy; and XEN1101, A Kv7 potassium channel opener, which is in Phase II clinical trial for the treatment of epilepsy and other neurological disorders. The company's product candidates also comprise NBI-921352, a selective Nav1.6 sodium channel inhibitor that is in Phase II clinical trials for the treatment of SCN8A developmental and epileptic encephalopathy, and other potential indications, including adult focal epilepsy; and XEN007, A central nervous system-acting calcium channel modulator, which is in Phase II clinical trials. It has a license and collaboration agreement with the Neurocrine Biosciences, Inc. to develop treatments for epilepsy; and with Flexion Therapeutics, Inc. to develop PCRX301 (XEN402, a Nav1.7 inhibitor) for the treatment of post-operative pain. Xenon Pharmaceuticals Inc. was incorporated in 1996 and is headquartered in Burnaby, Canada.

XENE (Xenon Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $4.41B, a beta of 0.65 versus the broader market, a 52-week range of 28.19-63.95, average daily share volume of 1.4M, a public-listing history dating back to 2014, approximately 316 full-time employees. These structural characteristics shape how XENE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates XENE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a bear put spread on XENE?

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 XENE snapshot

As of May 15, 2026, spot at $54.39, ATM IV 42.90%, IV rank 5.83%, expected move 12.30%. The bear put spread on XENE 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 XENE specifically: XENE IV at 42.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a XENE bear put spread, with a market-implied 1-standard-deviation move of approximately 12.30% (roughly $6.69 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 XENE expiries trade a higher absolute premium for lower per-day decay. Position sizing on XENE should anchor to the underlying notional of $54.39 per share and to the trader's directional view on XENE stock.

XENE bear put spread setup

The XENE 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 XENE near $54.39, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XENE 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 XENE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$55.00	$4.13
Sell 1	Put	$52.50	$2.28

XENE bear put spread risk and reward

Net Premium / Debit: -$185.00
Max Profit (per contract): $65.00
Max Loss (per contract): -$185.00
Breakeven(s): $53.15
Risk / Reward Ratio: 0.351

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.

XENE bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on XENE. 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%	+$65.00
$12.03	-77.9%	+$65.00
$24.06	-55.8%	+$65.00
$36.08	-33.7%	+$65.00
$48.11	-11.5%	+$65.00
$60.13	+10.6%	-$185.00
$72.16	+32.7%	-$185.00
$84.18	+54.8%	-$185.00
$96.21	+76.9%	-$185.00
$108.23	+99.0%	-$185.00

When traders use bear put spread on XENE

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

XENE thesis for this bear put spread

The market-implied 1-standard-deviation range for XENE extends from approximately $47.70 on the downside to $61.08 on the upside. A XENE bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on XENE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current XENE IV rank near 5.83% 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 XENE at 42.90%. As a Healthcare name, XENE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XENE-specific events.

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

Frequently asked questions

What is a bear put spread on XENE?: A bear put spread on XENE is the bear put spread strategy applied to XENE (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 XENE stock trading near $54.39, the strikes shown on this page are snapped to the nearest listed XENE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XENE 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 XENE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $65.00 per contract and the computed maximum loss is -$185.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XENE bear put spread?: The breakeven for the XENE bear put spread priced on this page is roughly $53.15 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 XENE market-implied 1-standard-deviation expected move is approximately 12.30%; 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 XENE?: Bear put spreads on XENE reduce the cost of a bearish XENE 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 XENE implied volatility affect this bear put spread?: XENE ATM IV is at 42.90% with IV rank near 5.83%, 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.