CTRM Bear Put Spread Strategy
CTRM (Castor Maritime Inc.), in the Industrials sector, (Marine Shipping industry), listed on NASDAQ.
Castor Maritime Inc. provides shipping services worldwide. The company operates through three segments: Dry Bulk, Aframax/LR2 Tanker, and Handysize Tanker. It offers seaborne transportation services for dry bulk cargo; commodities, such as iron ore, coal, soybeans, etc.; and crude oil and refined petroleum products. As of December 31, 2021, the company owned and operated a fleet of 29 vessels primarily consisting of two Handysize tanker vessels, seven Aframax/LR2 tanker vessels, and 14 dry bulk vessels. Castor Maritime Inc. was incorporated in 2017 and is based in Limassol, Cyprus.
CTRM (Castor Maritime Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $18.8M, a trailing P/E of 0.98, a beta of 1.26 versus the broader market, a 52-week range of 1.66-2.654, average daily share volume of 54K, a public-listing history dating back to 2019, approximately 1 full-time employees. These structural characteristics shape how CTRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places CTRM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 0.98 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a bear put spread on CTRM?
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 CTRM snapshot
As of May 15, 2026, spot at $1.92, ATM IV 89.80%, IV rank 24.85%, expected move 25.74%. The bear put spread on CTRM 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 CTRM specifically: CTRM IV at 89.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a CTRM bear put spread, with a market-implied 1-standard-deviation move of approximately 25.74% (roughly $0.49 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 CTRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTRM should anchor to the underlying notional of $1.92 per share and to the trader's directional view on CTRM stock.
CTRM bear put spread setup
The CTRM 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 CTRM near $1.92, the first option leg uses a $1.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTRM 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 CTRM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $1.92 | N/A |
| Sell 1 | Put | $1.82 | N/A |
CTRM 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.
CTRM bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on CTRM. 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 CTRM
Bear put spreads on CTRM reduce the cost of a bearish CTRM stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
CTRM thesis for this bear put spread
The market-implied 1-standard-deviation range for CTRM extends from approximately $1.43 on the downside to $2.41 on the upside. A CTRM bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CTRM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CTRM IV rank near 24.85% 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 CTRM at 89.80%. As a Industrials name, CTRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTRM-specific events.
CTRM 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. CTRM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTRM alongside the broader basket even when CTRM-specific fundamentals are unchanged. Long-premium structures like a bear put spread on CTRM 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 CTRM chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on CTRM?
- A bear put spread on CTRM is the bear put spread strategy applied to CTRM (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 CTRM stock trading near $1.92, the strikes shown on this page are snapped to the nearest listed CTRM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CTRM 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 CTRM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 89.80%), 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 CTRM bear put spread?
- The breakeven for the CTRM 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 CTRM market-implied 1-standard-deviation expected move is approximately 25.74%; 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 CTRM?
- Bear put spreads on CTRM reduce the cost of a bearish CTRM 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 CTRM implied volatility affect this bear put spread?
- CTRM ATM IV is at 89.80% with IV rank near 24.85%, 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.