CSV Bear Put Spread Strategy
CSV (Carriage Services, Inc.), in the Consumer Cyclical sector, (Personal Products & Services industry), listed on NYSE.
Carriage Services, Inc. provides funeral and cemetery services, and merchandise in the United States. It operates through two segments, Funeral Home Operations and Cemetery Operations. The Funeral Home Operations segment engages in the provision of consultation, funeral home facilities for visitation and memorial services, and transportation services; removal and preparation of remains; and sale of burial and cremation services, and related merchandise, such as caskets and urns. The Cemetery Operations segment provides interment rights for grave sites, lawn crypts, mausoleum spaces, and niche; related cemetery merchandise, including outer burial containers, memorial markers, monuments, and floral placements; and interments, inurnments, and installation of cemetery merchandise services. As of December 31, 2021, it operated 170 funeral homes in 26 states and 31 cemeteries in 11 states. Carriage Services, Inc. was founded in 1991 and is based in Houston, Texas.
CSV (Carriage Services, Inc.) trades in the Consumer Cyclical sector, specifically Personal Products & Services, with a market capitalization of approximately $684.3M, a trailing P/E of 15.26, a beta of 0.89 versus the broader market, a 52-week range of 39.88-52.1, average daily share volume of 99K, a public-listing history dating back to 1996, approximately 1K full-time employees. These structural characteristics shape how CSV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.89 places CSV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CSV 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 CSV?
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 CSV snapshot
As of May 15, 2026, spot at $43.05, ATM IV 28.80%, IV rank 2.88%, expected move 8.26%. The bear put spread on CSV 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 CSV specifically: CSV IV at 28.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a CSV bear put spread, with a market-implied 1-standard-deviation move of approximately 8.26% (roughly $3.55 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 CSV expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSV should anchor to the underlying notional of $43.05 per share and to the trader's directional view on CSV stock.
CSV bear put spread setup
The CSV 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 CSV near $43.05, the first option leg uses a $43.05 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSV 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 CSV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $43.05 | N/A |
| Sell 1 | Put | $40.90 | N/A |
CSV 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.
CSV bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on CSV. 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 CSV
Bear put spreads on CSV reduce the cost of a bearish CSV stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
CSV thesis for this bear put spread
The market-implied 1-standard-deviation range for CSV extends from approximately $39.50 on the downside to $46.60 on the upside. A CSV bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CSV, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CSV IV rank near 2.88% 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 CSV at 28.80%. As a Consumer Cyclical name, CSV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSV-specific events.
CSV 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. CSV positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CSV alongside the broader basket even when CSV-specific fundamentals are unchanged. Long-premium structures like a bear put spread on CSV 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 CSV chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on CSV?
- A bear put spread on CSV is the bear put spread strategy applied to CSV (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 CSV stock trading near $43.05, the strikes shown on this page are snapped to the nearest listed CSV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CSV 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 CSV bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 28.80%), 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 CSV bear put spread?
- The breakeven for the CSV 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 CSV market-implied 1-standard-deviation expected move is approximately 8.26%; 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 CSV?
- Bear put spreads on CSV reduce the cost of a bearish CSV 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 CSV implied volatility affect this bear put spread?
- CSV ATM IV is at 28.80% with IV rank near 2.88%, 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.