CTBI Bear Put Spread Strategy
CTBI (Community Trust Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that provides commercial and personal banking services to small and mid-sized communities. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan products include commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage, and trust and wealth management services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company operates 79 banking locations in eastern, northeastern, central, south central Kentucky, southern West Virginia, and northeastern Tennessee; 4 trust offices across Kentucky; and 1 trust office in northeastern Tennessee.
CTBI (Community Trust Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.17B, a trailing P/E of 11.28, a beta of 0.57 versus the broader market, a 52-week range of 49.61-68.72, average daily share volume of 91K, a public-listing history dating back to 1987, approximately 939 full-time employees. These structural characteristics shape how CTBI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.57 indicates CTBI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.28 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CTBI 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 CTBI?
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 CTBI snapshot
As of May 15, 2026, spot at $64.12, ATM IV 47.70%, IV rank 19.05%, expected move 13.68%. The bear put spread on CTBI 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 CTBI specifically: CTBI IV at 47.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a CTBI bear put spread, with a market-implied 1-standard-deviation move of approximately 13.68% (roughly $8.77 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 CTBI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTBI should anchor to the underlying notional of $64.12 per share and to the trader's directional view on CTBI stock.
CTBI bear put spread setup
The CTBI 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 CTBI near $64.12, the first option leg uses a $64.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTBI 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 CTBI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $64.12 | N/A |
| Sell 1 | Put | $60.91 | N/A |
CTBI 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.
CTBI bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on CTBI. 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 CTBI
Bear put spreads on CTBI reduce the cost of a bearish CTBI stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
CTBI thesis for this bear put spread
The market-implied 1-standard-deviation range for CTBI extends from approximately $55.35 on the downside to $72.89 on the upside. A CTBI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CTBI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CTBI IV rank near 19.05% 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 CTBI at 47.70%. As a Financial Services name, CTBI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTBI-specific events.
CTBI 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. CTBI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTBI alongside the broader basket even when CTBI-specific fundamentals are unchanged. Long-premium structures like a bear put spread on CTBI 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 CTBI chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on CTBI?
- A bear put spread on CTBI is the bear put spread strategy applied to CTBI (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 CTBI stock trading near $64.12, the strikes shown on this page are snapped to the nearest listed CTBI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CTBI 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 CTBI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 47.70%), 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 CTBI bear put spread?
- The breakeven for the CTBI 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 CTBI market-implied 1-standard-deviation expected move is approximately 13.68%; 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 CTBI?
- Bear put spreads on CTBI reduce the cost of a bearish CTBI 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 CTBI implied volatility affect this bear put spread?
- CTBI ATM IV is at 47.70% with IV rank near 19.05%, 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.