How are CAG long put max profit and max loss calculated?

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the CAG long put priced from the end-of-day chain at a 30-day expiry (ATM IV 37.31%), the computed maximum profit is $1,294.00 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CAG long put?

The breakeven for the CAG long put priced on this page is roughly $12.95 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 CAG market-implied 1-standard-deviation expected move is approximately 10.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CAG implied volatility affect this long put?

CAG ATM IV is at 37.31% with IV rank near 67.57%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

CAG Long Put Strategy

CAG (Conagra Brands, Inc.), in the Consumer Defensive sector, (Packaged Foods industry), listed on NYSE.

Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company in North America. The company operates in four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels in the United States. The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels in the United States. The International segment offers food products in various temperature states through retail and foodservice channels outside of the United States. The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other foodservice establishments in the United States.

CAG (Conagra Brands, Inc.) trades in the Consumer Defensive sector, specifically Packaged Foods, with a market capitalization of approximately $6.74B, a beta of -0.03 versus the broader market, a 52-week range of 13.61-23.37, average daily share volume of 14.9M, a public-listing history dating back to 1980, approximately 19K full-time employees. These structural characteristics shape how CAG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.03 indicates CAG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CAG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on CAG?

A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.

Current CAG snapshot

As of May 15, 2026, spot at $13.46, ATM IV 37.31%, IV rank 67.57%, expected move 10.70%. The long put on CAG 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 28-day expiry.

Why this long put structure on CAG specifically: CAG IV at 37.31% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 10.70% (roughly $1.44 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CAG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CAG should anchor to the underlying notional of $13.46 per share and to the trader's directional view on CAG stock.

CAG long put setup

The CAG long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CAG near $13.46, the first option leg uses a $13.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CAG chain at a 28-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 CAG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$13.50	$0.55

CAG long put risk and reward

Net Premium / Debit: -$55.00
Max Profit (per contract): $1,294.00
Max Loss (per contract): -$55.00
Breakeven(s): $12.95
Risk / Reward Ratio: 23.527

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

CAG long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on CAG. 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	-99.9%	+$1,294.00
$2.98	-77.8%	+$996.50
$5.96	-55.7%	+$699.01
$8.93	-33.6%	+$401.51
$11.91	-11.5%	+$104.01
$14.88	+10.6%	-$55.00
$17.86	+32.7%	-$55.00
$20.83	+54.8%	-$55.00
$23.81	+76.9%	-$55.00
$26.78	+99.0%	-$55.00

When traders use long put on CAG

Long puts on CAG hedge an existing long CAG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CAG exposure being hedged.

CAG thesis for this long put

The market-implied 1-standard-deviation range for CAG extends from approximately $12.02 on the downside to $14.90 on the upside. A CAG long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long CAG position with one put per 100 shares held. Current CAG IV rank near 67.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on CAG should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, CAG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CAG-specific events.

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

Frequently asked questions

What is a long put on CAG?: A long put on CAG is the long put strategy applied to CAG (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With CAG stock trading near $13.46, the strikes shown on this page are snapped to the nearest listed CAG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CAG long put max profit and max loss calculated?: Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the CAG long put priced from the end-of-day chain at a 30-day expiry (ATM IV 37.31%), the computed maximum profit is $1,294.00 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CAG long put?: The breakeven for the CAG long put priced on this page is roughly $12.95 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 CAG market-implied 1-standard-deviation expected move is approximately 10.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a long put on CAG?: Long puts on CAG hedge an existing long CAG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CAG exposure being hedged.
How does current CAG implied volatility affect this long put?: CAG ATM IV is at 37.31% with IV rank near 67.57%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.