CVU Bear Put Spread Strategy
CVU (CPI Aerostructures, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on AMEX.
CPI Aerostructures, Inc. specializes in the bespoke manufacturing of aircraft structural components, catering to both commercial aviation and military sectors for fixed-wing aircraft and helicopters alike. Beyond fundamental structural elements, the company also develops and supplies intricate aerospace systems, such as reconnaissance pod frameworks and fuel panel solutions. Their offerings further extend to providing essential components for maintenance, repair, and overhaul (MRO) operations, and they undertake various kitting contracts. The firm functions as a key supplier, acting as a subcontractor for leading defense and commercial enterprises, in addition to securing direct contracts with the United States Department of Defense. Their comprehensive suite of services encompasses engineering design, program oversight, meticulous supply chain coordination, kitting solutions, and vital MRO support. Among their diverse product portfolio are items like machine gunner window assemblies, specialized hover infrared suppression system module assemblies, complete wing sets with accompanying spares, various lock mechanisms, canopy activation drive shaft components, rudder island and drag chute canister units, composite electronics racks, critical structural wing elements, fixed leading edges, and engine inlet structures.
CVU (CPI Aerostructures, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $66.6M, a trailing P/E of 37.75, a beta of 1.02 versus the broader market, a 52-week range of 2.02-5.4, average daily share volume of 93K, a public-listing history dating back to 1992, approximately 212 full-time employees. These structural characteristics shape how CVU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places CVU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 37.75 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.
What is a bear put spread on CVU?
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 CVU snapshot
As of June 29, 2026, spot at $5.29, ATM IV 87.30%, IV rank 18.86%, expected move 25.03%. The bear put spread on CVU 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 18-day expiry.
Why this bear put spread structure on CVU specifically: CVU IV at 87.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a CVU bear put spread, with a market-implied 1-standard-deviation move of approximately 25.03% (roughly $1.32 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CVU expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVU should anchor to the underlying notional of $5.29 per share and to the trader's directional view on CVU stock.
CVU bear put spread setup
The CVU 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 CVU near $5.29, the first option leg uses a $5.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVU chain at a 18-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 CVU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $5.29 | N/A |
| Sell 1 | Put | $5.03 | N/A |
CVU 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.
CVU bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on CVU. 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 CVU
Bear put spreads on CVU reduce the cost of a bearish CVU stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
CVU thesis for this bear put spread
The market-implied 1-standard-deviation range for CVU extends from approximately $3.97 on the downside to $6.61 on the upside. A CVU bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CVU, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CVU IV rank near 18.86% 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 CVU at 87.30%. As a Industrials name, CVU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVU-specific events.
CVU 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. CVU positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVU alongside the broader basket even when CVU-specific fundamentals are unchanged. Long-premium structures like a bear put spread on CVU 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 CVU chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on CVU?
- A bear put spread on CVU is the bear put spread strategy applied to CVU (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 CVU stock trading near $5.29, the strikes shown on this page are snapped to the nearest listed CVU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CVU 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 CVU bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 87.30%), 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 CVU bear put spread?
- The breakeven for the CVU 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 CVU market-implied 1-standard-deviation expected move is approximately 25.03%; 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 CVU?
- Bear put spreads on CVU reduce the cost of a bearish CVU 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 CVU implied volatility affect this bear put spread?
- CVU ATM IV is at 87.30% with IV rank near 18.86%, 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.