CPSH Long Put Strategy
CPSH (CPS Technologies Corporation), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.
CPS Technologies Corporation produces and sells advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets. It primarily offers metal matrix composites that are a combination of metal and ceramic, such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heatspreaders used with integrated circuits for use in internet switches and routers. The company also assembles housings and packages for hybrid circuits. It primarily sells its products to microelectronics systems companies in the United States, Europe, and Asia. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is headquartered in Norton, Massachusetts.
CPSH (CPS Technologies Corporation) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $73.4M, a trailing P/E of 2,859.23, a beta of 1.78 versus the broader market, a 52-week range of 1.75-6.85, average daily share volume of 252K, a public-listing history dating back to 1994, approximately 92 full-time employees. These structural characteristics shape how CPSH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.78 indicates CPSH 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 2,859.23 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a long put on CPSH?
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 CPSH snapshot
As of May 15, 2026, spot at $4.63, ATM IV 105.90%, IV rank 30.74%, expected move 30.36%. The long put on CPSH 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 CPSH specifically: CPSH IV at 105.90% 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 30.36% (roughly $1.41 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 CPSH expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPSH should anchor to the underlying notional of $4.63 per share and to the trader's directional view on CPSH stock.
CPSH long put setup
The CPSH 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 CPSH near $4.63, the first option leg uses a $4.63 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPSH 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 CPSH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $4.63 | N/A |
CPSH 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.
CPSH long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on CPSH. 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 CPSH
Long puts on CPSH hedge an existing long CPSH stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CPSH exposure being hedged.
CPSH thesis for this long put
The market-implied 1-standard-deviation range for CPSH extends from approximately $3.22 on the downside to $6.04 on the upside. A CPSH long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long CPSH position with one put per 100 shares held. Current CPSH IV rank near 30.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on CPSH should anchor more to the directional view and the expected-move geometry. As a Technology name, CPSH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPSH-specific events.
CPSH 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. CPSH positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPSH alongside the broader basket even when CPSH-specific fundamentals are unchanged. Long-premium structures like a long put on CPSH 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 CPSH chain quotes before placing a trade.
Frequently asked questions
- What is a long put on CPSH?
- A long put on CPSH is the long put strategy applied to CPSH (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 CPSH stock trading near $4.63, the strikes shown on this page are snapped to the nearest listed CPSH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CPSH 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 CPSH long put priced from the end-of-day chain at a 30-day expiry (ATM IV 105.90%), 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 CPSH long put?
- The breakeven for the CPSH 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 CPSH market-implied 1-standard-deviation expected move is approximately 30.36%; 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 CPSH?
- Long puts on CPSH hedge an existing long CPSH stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CPSH exposure being hedged.
- How does current CPSH implied volatility affect this long put?
- CPSH ATM IV is at 105.90% with IV rank near 30.74%, 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.