CTGO Bear Put Spread Strategy
CTGO (Contango Ore, Inc.), in the Basic Materials sector, (Gold industry), listed on AMEX.
Contango Ore, Inc. operates as an exploration-phase enterprise, primarily dedicated to prospecting for gold and other associated minerals across the United States. Its discovery efforts also extend to identifying deposits of copper and silver. Through its various subsidiaries, the company has secured substantial land access for its exploration and development activities. This includes the lease of approximately 675,000 acres from the Tetlin Tribal Council, as well as around 13,000 State of Alaska mining claims. Additionally, Contango Ore holds full mineral rights to an estimated 200,000 acres of State of Alaska mining claims situated north and northwest of the Tetlin Lease. The company's portfolio also features an interest in the Shamrock property, which encompasses 361 Alaska state mining claims spanning approximately 52,640 acres.
CTGO (Contango Ore, Inc.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $633.9M, a beta of -0.02 versus the broader market, a 52-week range of 14.5-34.38, average daily share volume of 519K, a public-listing history dating back to 2010, approximately 15 full-time employees. These structural characteristics shape how CTGO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.02 indicates CTGO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a bear put spread on CTGO?
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.
CTGO snapshot
As of August 14, 2026, spot at $20.09, ATM IV 57.50%, IV rank 7.30%, expected move 16.48%. The bear put spread on CTGO below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bear put spread structure on CTGO specifically: CTGO IV at 57.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a CTGO bear put spread, with a market-implied 1-standard-deviation move of approximately 16.48% (roughly $3.31 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CTGO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTGO should anchor to the underlying notional of $20.09 per share and to the trader's directional view on CTGO stock.
CTGO bear put spread setup
The CTGO 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 CTGO at $20.09 on that close, the first option leg uses a $20.09 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTGO chain at a 35-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 CTGO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $20.09 | N/A |
| Sell 1 | Put | $19.09 | N/A |
CTGO 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.
CTGO bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on CTGO. 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 CTGO
Bear put spreads on CTGO reduce the cost of a bearish CTGO stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
CTGO thesis for this bear put spread
The market-implied 1-standard-deviation range for CTGO extends from approximately $16.78 on the downside to $23.40 on the upside. A CTGO bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CTGO, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CTGO IV rank near 7.30% 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 CTGO at 57.50%. As a Basic Materials name, CTGO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTGO-specific events.
CTGO 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. CTGO positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTGO alongside the broader basket even when CTGO-specific fundamentals are unchanged. Long-premium structures like a bear put spread on CTGO 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 CTGO chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on CTGO?
- A bear put spread on CTGO is the bear put spread strategy applied to CTGO (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 CTGO stock at $20.09 on the most recent close, the strikes shown on this page are snapped to the nearest listed CTGO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CTGO 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 CTGO bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 57.50%), 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 CTGO bear put spread?
- The breakeven for the CTGO bear put spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CTGO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.48%; 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 CTGO?
- Bear put spreads on CTGO reduce the cost of a bearish CTGO 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 CTGO implied volatility affect this bear put spread?
- CTGO ATM IV is at 57.50% with IV rank near 7.30%, 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.