How are CARG 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 CARG long put priced from the end-of-day chain at a 30-day expiry (ATM IV 40.50%), the computed maximum profit is $2,754.00 per contract and the computed maximum loss is -$145.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CARG long put?

The breakeven for the CARG long put priced on this page is roughly $27.55 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 CARG market-implied 1-standard-deviation expected move is approximately 11.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CARG implied volatility affect this long put?

CARG ATM IV is at 40.50% with IV rank near 24.95%, 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.

CARG Long Put Strategy

CARG (CarGurus, Inc.), in the Consumer Cyclical sector, (Auto - Dealerships industry), listed on NASDAQ.

CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace that allows customers to search for new and used car listings from its dealers; and connects dealers to a large audience of informed and engaged consumers while providing dealers with actionable data-based insights. It also offers Digital Deal which allows shoppers to start purchase from a VDP on eligible listings that provides them with purchase options; Finance in Advance, where eligible consumers can pre-qualify for financing on cars from dealerships that offer financing from partners; Sell My Car Top Dealer Offers which allows dealers to make tailored trade-in offers; and Sell My Car Instant Max Cash Offer which allows consumers to sell vehicles to dealers online. In addition, the company provides dealer listings and data insights products; auto manufacturers and others advertiser products, such as brand reinforcement, category sponsorship, automobile segment exclusivity, and consumer segment exposure; Autolist, an online automotive marketplace through mobile applications and a website; and PistonHeads which is an automotive marketplace, auction platform, and editorial site for automotive enthusiasts.

CARG (CarGurus, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Dealerships, with a market capitalization of approximately $3.02B, a trailing P/E of 19.70, a beta of 1.28 versus the broader market, a 52-week range of 26.39-39.42, average daily share volume of 1.4M, a public-listing history dating back to 2017, approximately 1K full-time employees. These structural characteristics shape how CARG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places CARG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a long put on CARG?

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 CARG snapshot

As of May 15, 2026, spot at $28.80, ATM IV 40.50%, IV rank 24.95%, expected move 11.61%. The long put on CARG 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 long put structure on CARG specifically: CARG IV at 40.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a CARG long put, with a market-implied 1-standard-deviation move of approximately 11.61% (roughly $3.34 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 CARG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CARG should anchor to the underlying notional of $28.80 per share and to the trader's directional view on CARG stock.

CARG long put setup

The CARG 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 CARG near $28.80, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CARG 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 CARG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$29.00	$1.45

CARG long put risk and reward

Net Premium / Debit: -$145.00
Max Profit (per contract): $2,754.00
Max Loss (per contract): -$145.00
Breakeven(s): $27.55
Risk / Reward Ratio: 18.993

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

CARG long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on CARG. 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%	+$2,754.00
$6.38	-77.9%	+$2,117.33
$12.74	-55.8%	+$1,480.65
$19.11	-33.6%	+$843.98
$25.48	-11.5%	+$207.31
$31.84	+10.6%	-$145.00
$38.21	+32.7%	-$145.00
$44.58	+54.8%	-$145.00
$50.94	+76.9%	-$145.00
$57.31	+99.0%	-$145.00

When traders use long put on CARG

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

CARG thesis for this long put

The market-implied 1-standard-deviation range for CARG extends from approximately $25.46 on the downside to $32.14 on the upside. A CARG long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long CARG position with one put per 100 shares held. Current CARG IV rank near 24.95% 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 CARG at 40.50%. As a Consumer Cyclical name, CARG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CARG-specific events.

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

Frequently asked questions

What is a long put on CARG?: A long put on CARG is the long put strategy applied to CARG (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 CARG stock trading near $28.80, the strikes shown on this page are snapped to the nearest listed CARG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CARG 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 CARG long put priced from the end-of-day chain at a 30-day expiry (ATM IV 40.50%), the computed maximum profit is $2,754.00 per contract and the computed maximum loss is -$145.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CARG long put?: The breakeven for the CARG long put priced on this page is roughly $27.55 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 CARG market-implied 1-standard-deviation expected move is approximately 11.61%; 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 CARG?: Long puts on CARG hedge an existing long CARG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CARG exposure being hedged.
How does current CARG implied volatility affect this long put?: CARG ATM IV is at 40.50% with IV rank near 24.95%, 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.