CVLG Bear Put Spread Strategy
CVLG (Covenant Logistics Group, Inc.), in the Industrials sector, (Trucking industry), listed on NYSE.
Covenant Logistics Group, Inc., together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited segment primarily provides truckload services with high service freight and delivery standards, such as 1,000 miles in 22 hours or 15-minute delivery windows. The Dedicated segment provides customers with committed truckload capacity over contracted periods using equipment either owned or leased by the company. The Managed Freight segment offers brokerage services, including logistics capacity by outsourcing the carriage of customers' freight to third parties; and transport management services, such as logistics services on a contractual basis to customers who prefer to outsource their logistics needs. The Warehousing segment provides day-to-day warehouse management services to customers.
CVLG (Covenant Logistics Group, Inc.) trades in the Industrials sector, specifically Trucking, with a market capitalization of approximately $803.8M, a trailing P/E of 157.26, a beta of 1.29 versus the broader market, a 52-week range of 18-35.91, average daily share volume of 159K, a public-listing history dating back to 1994, approximately 3K full-time employees. These structural characteristics shape how CVLG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.29 places CVLG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 157.26 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. CVLG 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 CVLG?
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 CVLG snapshot
As of May 15, 2026, spot at $34.71, ATM IV 37.10%, IV rank 18.18%, expected move 10.64%. The bear put spread on CVLG 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 CVLG specifically: CVLG IV at 37.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a CVLG bear put spread, with a market-implied 1-standard-deviation move of approximately 10.64% (roughly $3.69 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 CVLG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVLG should anchor to the underlying notional of $34.71 per share and to the trader's directional view on CVLG stock.
CVLG bear put spread setup
The CVLG 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 CVLG near $34.71, the first option leg uses a $34.71 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVLG 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 CVLG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $34.71 | N/A |
| Sell 1 | Put | $32.97 | N/A |
CVLG 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.
CVLG bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on CVLG. 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 CVLG
Bear put spreads on CVLG reduce the cost of a bearish CVLG stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
CVLG thesis for this bear put spread
The market-implied 1-standard-deviation range for CVLG extends from approximately $31.02 on the downside to $38.40 on the upside. A CVLG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CVLG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CVLG IV rank near 18.18% 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 CVLG at 37.10%. As a Industrials name, CVLG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVLG-specific events.
CVLG 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. CVLG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVLG alongside the broader basket even when CVLG-specific fundamentals are unchanged. Long-premium structures like a bear put spread on CVLG 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 CVLG chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on CVLG?
- A bear put spread on CVLG is the bear put spread strategy applied to CVLG (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 CVLG stock trading near $34.71, the strikes shown on this page are snapped to the nearest listed CVLG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CVLG 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 CVLG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 37.10%), 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 CVLG bear put spread?
- The breakeven for the CVLG 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 CVLG market-implied 1-standard-deviation expected move is approximately 10.64%; 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 CVLG?
- Bear put spreads on CVLG reduce the cost of a bearish CVLG 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 CVLG implied volatility affect this bear put spread?
- CVLG ATM IV is at 37.10% with IV rank near 18.18%, 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.