CGAU Long Put Strategy
CGAU (Centerra Gold Inc.), in the Basic Materials sector, (Gold industry), listed on NYSE.
Centerra Gold Inc., a gold mining company, engages in the acquisition, exploration, development, and operation of gold and copper properties in North America, Turkey, and internationally. The company explores for gold, copper, and molybdenum deposits. Its flagship projects include the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada; and the Öksüt Gold Mine located in Turkey. The company was incorporated in 2002 and is headquartered in Toronto, Canada.
CGAU (Centerra Gold Inc.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $3.77B, a trailing P/E of 5.93, a beta of 1.48 versus the broader market, a 52-week range of 6.35-21.17, average daily share volume of 2.0M, a public-listing history dating back to 2008, approximately 1K full-time employees. These structural characteristics shape how CGAU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.48 indicates CGAU 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 5.93 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CGAU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on CGAU?
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 CGAU snapshot
As of May 15, 2026, spot at $17.19, ATM IV 60.00%, IV rank 33.07%, expected move 17.20%. The long put on CGAU 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 CGAU specifically: CGAU IV at 60.00% 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 17.20% (roughly $2.96 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 CGAU expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGAU should anchor to the underlying notional of $17.19 per share and to the trader's directional view on CGAU stock.
CGAU long put setup
The CGAU 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 CGAU near $17.19, the first option leg uses a $17.19 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGAU 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 CGAU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $17.19 | N/A |
CGAU long put 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 the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
CGAU long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on CGAU. 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 long put on CGAU
Long puts on CGAU hedge an existing long CGAU stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CGAU exposure being hedged.
CGAU thesis for this long put
The market-implied 1-standard-deviation range for CGAU extends from approximately $14.23 on the downside to $20.15 on the upside. A CGAU long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long CGAU position with one put per 100 shares held. Current CGAU IV rank near 33.07% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on CGAU should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, CGAU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGAU-specific events.
CGAU 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. CGAU positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CGAU alongside the broader basket even when CGAU-specific fundamentals are unchanged. Long-premium structures like a long put on CGAU 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 CGAU chain quotes before placing a trade.
Frequently asked questions
- What is a long put on CGAU?
- A long put on CGAU is the long put strategy applied to CGAU (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 CGAU stock trading near $17.19, the strikes shown on this page are snapped to the nearest listed CGAU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CGAU 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 CGAU long put priced from the end-of-day chain at a 30-day expiry (ATM IV 60.00%), 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 CGAU long put?
- The breakeven for the CGAU long put 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 CGAU market-implied 1-standard-deviation expected move is approximately 17.20%; 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 CGAU?
- Long puts on CGAU hedge an existing long CGAU stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CGAU exposure being hedged.
- How does current CGAU implied volatility affect this long put?
- CGAU ATM IV is at 60.00% with IV rank near 33.07%, 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.