CDRE Bear Put Spread Strategy
CDRE (Cadre Holdings, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Cadre Holdings, Inc. specializes in manufacturing and distributing vital safety and survival gear designed to protect individuals in perilous or life-threatening environments, both within the United States and globally. The company operates through two distinct divisions: its proprietary Products segment and a Distribution arm. Under its well-known Safariland and Protech Tactical brands, Cadre produces a wide array of body armor, encompassing discreet concealable vests, correctional facility-specific protection, and tactical models. Their extensive product line also features survival suits, remotely operated vehicles (ROVs), specialized tools, blast detection sensors, various ancillary items, vehicle blast attenuation seating for explosive ordnance disposal technicians, and full bomb suits. Furthermore, they supply essential duty equipment, such as belts and accessories, alongside other protective and law enforcement essentials, including communications systems, forensic investigation kits, firearm cleaning solutions, and crowd management apparatus. Beyond its own manufactured goods, Cadre also acts as a distributor for third-party products like uniforms, optical devices, footwear, firearms, and ammunition.
CDRE (Cadre Holdings, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $1.20B, a trailing P/E of 32.35, a beta of 1.31 versus the broader market, a 52-week range of 25.73-48.76, average daily share volume of 424K, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how CDRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.31 indicates CDRE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CDRE 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 CDRE?
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 CDRE snapshot
As of June 29, 2026, spot at $27.48, ATM IV 53.60%, IV rank 8.27%, expected move 15.37%. The bear put spread on CDRE 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 18-day expiry.
Why this bear put spread structure on CDRE specifically: CDRE IV at 53.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a CDRE bear put spread, with a market-implied 1-standard-deviation move of approximately 15.37% (roughly $4.22 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CDRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CDRE should anchor to the underlying notional of $27.48 per share and to the trader's directional view on CDRE stock.
CDRE bear put spread setup
The CDRE 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 CDRE near $27.48, the first option leg uses a $27.48 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CDRE chain at a 18-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 CDRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $27.48 | N/A |
| Sell 1 | Put | $26.11 | N/A |
CDRE 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.
CDRE bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on CDRE. 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 CDRE
Bear put spreads on CDRE reduce the cost of a bearish CDRE stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
CDRE thesis for this bear put spread
The market-implied 1-standard-deviation range for CDRE extends from approximately $23.26 on the downside to $31.70 on the upside. A CDRE bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CDRE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CDRE IV rank near 8.27% 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 CDRE at 53.60%. As a Industrials name, CDRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CDRE-specific events.
CDRE 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. CDRE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CDRE alongside the broader basket even when CDRE-specific fundamentals are unchanged. Long-premium structures like a bear put spread on CDRE 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 CDRE chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on CDRE?
- A bear put spread on CDRE is the bear put spread strategy applied to CDRE (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 CDRE stock trading near $27.48, the strikes shown on this page are snapped to the nearest listed CDRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CDRE 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 CDRE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 53.60%), 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 CDRE bear put spread?
- The breakeven for the CDRE 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 CDRE market-implied 1-standard-deviation expected move is approximately 15.37%; 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 CDRE?
- Bear put spreads on CDRE reduce the cost of a bearish CDRE 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 CDRE implied volatility affect this bear put spread?
- CDRE ATM IV is at 53.60% with IV rank near 8.27%, 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.