CSGP Bear Put Spread Strategy
CSGP (CoStar Group, Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NASDAQ.
CoStar Group, Inc. (CSGP) stands as a premier global provider of comprehensive information, sophisticated analytics, and dynamic online marketplace services. The company caters to professionals within the commercial real estate, hospitality, residential, and related industries, extending its reach across the United States, Canada, Europe, the Asia Pacific region, and Latin America. Its diverse suite of offerings encompasses powerful data platforms like CoStar Property, which meticulously catalogues an extensive inventory of various property types, including office, industrial, retail, multifamily, hospitality, student housing, and undeveloped land. Other key analytical tools comprise CoStar COMPS, a robust repository of comparable commercial real estate sales transactions; CoStar Market Analytics, designed for examining aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical resource providing detailed tenant information. Additionally, CoStar offers solutions for lease management, including Lease Comps and Analysis and CoStar Lease Analysis, alongside Public Record, a searchable database of commercially-zoned land parcels. Its software solutions feature CoStar Real Estate Manager, designed for comprehensive lease administration, portfolio oversight, and lease accounting compliance, as well as specialized CoStar Risk Analytics and CoStar Investment tools.
CSGP (CoStar Group, Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $12.35B, a trailing P/E of 493.80, a beta of 0.72 versus the broader market, a 52-week range of 28.54-97.43, average daily share volume of 7.5M, a public-listing history dating back to 1998, approximately 8K full-time employees. These structural characteristics shape how CSGP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places CSGP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 493.80 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 bear put spread on CSGP?
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 CSGP snapshot
As of June 30, 2026, spot at $28.60, ATM IV 54.60%, IV rank 17.12%, expected move 15.65%. The bear put spread on CSGP 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 80-day expiry.
Why this bear put spread structure on CSGP specifically: CSGP IV at 54.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a CSGP bear put spread, with a market-implied 1-standard-deviation move of approximately 15.65% (roughly $4.48 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CSGP expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSGP should anchor to the underlying notional of $28.60 per share and to the trader's directional view on CSGP stock.
CSGP bear put spread setup
The CSGP 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 CSGP near $28.60, the first option leg uses a $28.60 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSGP chain at a 80-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 CSGP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $28.60 | N/A |
| Sell 1 | Put | $27.17 | N/A |
CSGP bear put spread 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 strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
CSGP bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on CSGP. 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 bear put spread on CSGP
Bear put spreads on CSGP reduce the cost of a bearish CSGP stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
CSGP thesis for this bear put spread
The market-implied 1-standard-deviation range for CSGP extends from approximately $24.12 on the downside to $33.08 on the upside. A CSGP bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CSGP, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CSGP IV rank near 17.12% 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 CSGP at 54.60%. As a Real Estate name, CSGP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSGP-specific events.
CSGP 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. CSGP positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CSGP alongside the broader basket even when CSGP-specific fundamentals are unchanged. Long-premium structures like a bear put spread on CSGP 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 CSGP chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on CSGP?
- A bear put spread on CSGP is the bear put spread strategy applied to CSGP (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 CSGP stock trading near $28.60, the strikes shown on this page are snapped to the nearest listed CSGP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CSGP 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 CSGP bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 54.60%), 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 CSGP bear put spread?
- The breakeven for the CSGP 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 CSGP market-implied 1-standard-deviation expected move is approximately 15.65%; 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 CSGP?
- Bear put spreads on CSGP reduce the cost of a bearish CSGP 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 CSGP implied volatility affect this bear put spread?
- CSGP ATM IV is at 54.60% with IV rank near 17.12%, 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.