How are CMRE 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 CMRE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $107.50 per contract and the computed maximum loss is $7.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CMRE bear put spread?

The breakeven for the CMRE 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 CMRE market-implied 1-standard-deviation expected move is approximately 11.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

CMRE ATM IV is at 38.90% with IV rank near 38.21%, 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.

CMRE Bear Put Spread Strategy

CMRE (Costamare Inc.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.

Costamare Inc. owns and charters containerships to liner companies worldwide. As of March 18, 2022, it had a fleet of 76 containerships with a total capacity of approximately 557,400 twenty-foot equivalent units and 45 dry bulk vessels with a total capacity of approximately 2,435,500 DWT. The company was founded in 1974 and is based in Monaco.

CMRE (Costamare Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $2.03B, a trailing P/E of 5.87, a beta of 1.00 versus the broader market, a 52-week range of 8.19-18.06, average daily share volume of 445K, a public-listing history dating back to 2010, approximately 2K full-time employees. These structural characteristics shape how CMRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.00 places CMRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 5.87 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CMRE 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 CMRE?

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 CMRE snapshot

As of May 15, 2026, spot at $17.18, ATM IV 38.90%, IV rank 38.21%, expected move 11.15%. The bear put spread on CMRE 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 bear put spread structure on CMRE specifically: CMRE IV at 38.90% 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 11.15% (roughly $1.92 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 CMRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CMRE should anchor to the underlying notional of $17.18 per share and to the trader's directional view on CMRE stock.

CMRE bear put spread setup

The CMRE 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 CMRE near $17.18, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CMRE 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 CMRE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$17.00	$0.70
Sell 1	Put	$16.00	$0.78

CMRE bear put spread risk and reward

Net Premium / Debit: +$7.50
Max Profit (per contract): $107.50
Max Loss (per contract): $7.50
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 14.333

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.

CMRE bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on CMRE. 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	-99.9%	+$107.50
$3.81	-77.8%	+$107.50
$7.60	-55.7%	+$107.50
$11.40	-33.6%	+$107.50
$15.20	-11.5%	+$107.50
$19.00	+10.6%	+$7.50
$22.79	+32.7%	+$7.50
$26.59	+54.8%	+$7.50
$30.39	+76.9%	+$7.50
$34.19	+99.0%	+$7.50

When traders use bear put spread on CMRE

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

CMRE thesis for this bear put spread

The market-implied 1-standard-deviation range for CMRE extends from approximately $15.26 on the downside to $19.10 on the upside. A CMRE bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CMRE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CMRE IV rank near 38.21% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on CMRE should anchor more to the directional view and the expected-move geometry. As a Industrials name, CMRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CMRE-specific events.

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

Frequently asked questions

What is a bear put spread on CMRE?: A bear put spread on CMRE is the bear put spread strategy applied to CMRE (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 CMRE stock trading near $17.18, the strikes shown on this page are snapped to the nearest listed CMRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CMRE 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 CMRE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $107.50 per contract and the computed maximum loss is $7.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CMRE bear put spread?: The breakeven for the CMRE 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 CMRE market-implied 1-standard-deviation expected move is approximately 11.15%; 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 CMRE?: Bear put spreads on CMRE reduce the cost of a bearish CMRE 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 CMRE implied volatility affect this bear put spread?: CMRE ATM IV is at 38.90% with IV rank near 38.21%, 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.