How are CMC 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 CMC long put priced from the end-of-day chain at a 30-day expiry (ATM IV 42.10%), the computed maximum profit is $6,031.50 per contract and the computed maximum loss is -$217.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CMC long put?

The breakeven for the CMC long put priced on this page is roughly $60.33 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 CMC market-implied 1-standard-deviation expected move is approximately 12.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CMC implied volatility affect this long put?

CMC ATM IV is at 42.10% with IV rank near 18.42%, 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.

CMC Long Put Strategy

CMC (Commercial Metals Company), in the Basic Materials sector, (Steel industry), listed on NYSE.

Commercial Metals Company (CMC) is an international enterprise specializing in the production, recycling, and fabrication of steel and metal products, along with providing related services. The company serves markets across the United States, Poland, China, and other international regions. A significant facet of its business involves processing and marketing a wide array of ferrous and non-ferrous scrap metals. These raw materials are supplied to a diverse clientele, including steel mills, foundries, aluminum sheet and ingot producers, brass and bronze ingot makers, copper refineries, secondary lead smelters, specialty steel manufacturers, and high-temperature alloy fabricators. Commercial Metals Company manufactures and distributes a comprehensive range of finished long steel products. These encompass reinforcing bars (rebar), merchant bars, light structural sections, and various other specialized profiles.

CMC (Commercial Metals Company) trades in the Basic Materials sector, specifically Steel, with a market capitalization of approximately $7.66B, a trailing P/E of 12.90, a beta of 1.51 versus the broader market, a 52-week range of 48.14-84.87, average daily share volume of 1.1M, a public-listing history dating back to 1980, approximately 13K full-time employees. These structural characteristics shape how CMC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.51 indicates CMC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CMC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on CMC?

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 CMC snapshot

As of June 30, 2026, spot at $62.51, ATM IV 42.10%, IV rank 18.42%, expected move 12.07%. The long put on CMC 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 long put structure on CMC specifically: CMC IV at 42.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a CMC long put, with a market-implied 1-standard-deviation move of approximately 12.07% (roughly $7.54 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 CMC expiries trade a higher absolute premium for lower per-day decay. Position sizing on CMC should anchor to the underlying notional of $62.51 per share and to the trader's directional view on CMC stock.

CMC long put setup

The CMC 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 CMC near $62.51, the first option leg uses a $62.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CMC 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 CMC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$62.50	$2.18

CMC long put risk and reward

Net Premium / Debit: -$217.50
Max Profit (per contract): $6,031.50
Max Loss (per contract): -$217.50
Breakeven(s): $60.33
Risk / Reward Ratio: 27.731

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

CMC long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on CMC. 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	-100.0%	+$6,031.50
$13.83	-77.9%	+$4,649.48
$27.65	-55.8%	+$3,267.46
$41.47	-33.7%	+$1,885.44
$55.29	-11.5%	+$503.42
$69.11	+10.6%	-$217.50
$82.93	+32.7%	-$217.50
$96.75	+54.8%	-$217.50
$110.57	+76.9%	-$217.50
$124.39	+99.0%	-$217.50

When traders use long put on CMC

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

CMC thesis for this long put

The market-implied 1-standard-deviation range for CMC extends from approximately $54.97 on the downside to $70.05 on the upside. A CMC long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long CMC position with one put per 100 shares held. Current CMC IV rank near 18.42% 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 CMC at 42.10%. As a Basic Materials name, CMC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CMC-specific events.

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

Frequently asked questions

What is a long put on CMC?: A long put on CMC is the long put strategy applied to CMC (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 CMC stock trading near $62.51, the strikes shown on this page are snapped to the nearest listed CMC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CMC 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 CMC long put priced from the end-of-day chain at a 30-day expiry (ATM IV 42.10%), the computed maximum profit is $6,031.50 per contract and the computed maximum loss is -$217.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CMC long put?: The breakeven for the CMC long put priced on this page is roughly $60.33 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 CMC market-implied 1-standard-deviation expected move is approximately 12.07%; 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 CMC?: Long puts on CMC hedge an existing long CMC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CMC exposure being hedged.
How does current CMC implied volatility affect this long put?: CMC ATM IV is at 42.10% with IV rank near 18.42%, 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.