How are CGEM 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 CGEM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 126.90%), the computed maximum profit is $22.50 per contract and the computed maximum loss is -$77.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CGEM bear put spread?

The breakeven for the CGEM bear put spread priced on this page is roughly $17.23 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 CGEM market-implied 1-standard-deviation expected move is approximately 36.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

CGEM ATM IV is at 126.90% with IV rank near 21.59%, 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.

CGEM Bear Put Spread Strategy

CGEM (Cullinan Therapeutics, Inc.), in the Healthcare sector, (Medical - Pharmaceuticals industry), listed on NASDAQ.

Cullinan Therapeutics, Inc. operates as a biopharmaceutical firm actively advancing its therapeutic candidates through clinical trials. This company is focused on developing innovative treatments primarily for cancer, including those that leverage the immune system (immuno-oncology). Its current roster of investigational drugs comprises CLN-978, CLN-619, Zipalertinib CLN-081/TAS6417, CLN-049, and CLN-617. Patrick A. Baeuerle founded the organization on September 15, 2016, and it is presently headquartered in Cambridge, Massachusetts.

CGEM (Cullinan Therapeutics, Inc.) trades in the Healthcare sector, specifically Medical - Pharmaceuticals, with a market capitalization of approximately $1.13B, a beta of 0.01 versus the broader market, a 52-week range of 5.68-19.43, average daily share volume of 1.1M, a public-listing history dating back to 2021, approximately 111 full-time employees. These structural characteristics shape how CGEM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.01 indicates CGEM 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 CGEM?

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 CGEM snapshot

As of June 30, 2026, spot at $18.23, ATM IV 126.90%, IV rank 21.59%, expected move 36.38%. The bear put spread on CGEM 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 17-day expiry.

Why this bear put spread structure on CGEM specifically: CGEM IV at 126.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a CGEM bear put spread, with a market-implied 1-standard-deviation move of approximately 36.38% (roughly $6.63 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CGEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGEM should anchor to the underlying notional of $18.23 per share and to the trader's directional view on CGEM stock.

CGEM bear put spread setup

The CGEM 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 CGEM near $18.23, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGEM chain at a 17-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 CGEM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$18.00	$2.28
Sell 1	Put	$17.00	$1.50

CGEM bear put spread risk and reward

Net Premium / Debit: -$77.50
Max Profit (per contract): $22.50
Max Loss (per contract): -$77.50
Breakeven(s): $17.23
Risk / Reward Ratio: 0.290

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.

CGEM bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on CGEM. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	+$22.50
$4.04	-77.8%	+$22.50
$8.07	-55.7%	+$22.50
$12.10	-33.6%	+$22.50
$16.13	-11.5%	+$22.50
$20.16	+10.6%	-$77.50
$24.19	+32.7%	-$77.50
$28.22	+54.8%	-$77.50
$32.25	+76.9%	-$77.50
$36.28	+99.0%	-$77.50

When traders use bear put spread on CGEM

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

CGEM thesis for this bear put spread

The market-implied 1-standard-deviation range for CGEM extends from approximately $11.60 on the downside to $24.86 on the upside. A CGEM bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CGEM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CGEM IV rank near 21.59% 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 CGEM at 126.90%. As a Healthcare name, CGEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGEM-specific events.

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

Frequently asked questions

What is a bear put spread on CGEM?: A bear put spread on CGEM is the bear put spread strategy applied to CGEM (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 CGEM stock trading near $18.23, the strikes shown on this page are snapped to the nearest listed CGEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CGEM 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 CGEM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 126.90%), the computed maximum profit is $22.50 per contract and the computed maximum loss is -$77.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CGEM bear put spread?: The breakeven for the CGEM bear put spread priced on this page is roughly $17.23 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 CGEM market-implied 1-standard-deviation expected move is approximately 36.38%; 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 CGEM?: Bear put spreads on CGEM reduce the cost of a bearish CGEM 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 CGEM implied volatility affect this bear put spread?: CGEM ATM IV is at 126.90% with IV rank near 21.59%, 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.