CXDO Bear Put Spread Strategy
CXDO (Crexendo, Inc.), in the Communication Services sector, (Telecommunications Services industry), listed on NASDAQ.
Crexendo, Inc. provides cloud communication, unified communications as a service, call center, collaboration, and other cloud business services for businesses in the United States, Canada, and internationally. It operates through two segments, Cloud Telecommunications and Web Services. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and resells broadband Internet services. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Web Services segment provides website hosting and other professional services.
CXDO (Crexendo, Inc.) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $302.8M, a trailing P/E of 65.77, a beta of 0.93 versus the broader market, a 52-week range of 5.08-9.84, average daily share volume of 257K, a public-listing history dating back to 2018, approximately 179 full-time employees. These structural characteristics shape how CXDO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places CXDO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 65.77 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 CXDO?
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 CXDO snapshot
As of May 15, 2026, spot at $9.87, ATM IV 82.50%, IV rank 28.05%, expected move 23.65%. The bear put spread on CXDO 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 CXDO specifically: CXDO IV at 82.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a CXDO bear put spread, with a market-implied 1-standard-deviation move of approximately 23.65% (roughly $2.33 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 CXDO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CXDO should anchor to the underlying notional of $9.87 per share and to the trader's directional view on CXDO stock.
CXDO bear put spread setup
The CXDO 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 CXDO near $9.87, the first option leg uses a $9.87 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CXDO 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 CXDO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $9.87 | N/A |
| Sell 1 | Put | $9.38 | N/A |
CXDO 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.
CXDO bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on CXDO. 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 CXDO
Bear put spreads on CXDO reduce the cost of a bearish CXDO stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
CXDO thesis for this bear put spread
The market-implied 1-standard-deviation range for CXDO extends from approximately $7.54 on the downside to $12.20 on the upside. A CXDO bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on CXDO, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CXDO IV rank near 28.05% 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 CXDO at 82.50%. As a Communication Services name, CXDO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CXDO-specific events.
CXDO 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. CXDO positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CXDO alongside the broader basket even when CXDO-specific fundamentals are unchanged. Long-premium structures like a bear put spread on CXDO 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 CXDO chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on CXDO?
- A bear put spread on CXDO is the bear put spread strategy applied to CXDO (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 CXDO stock trading near $9.87, the strikes shown on this page are snapped to the nearest listed CXDO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CXDO 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 CXDO bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 82.50%), 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 CXDO bear put spread?
- The breakeven for the CXDO 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 CXDO market-implied 1-standard-deviation expected move is approximately 23.65%; 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 CXDO?
- Bear put spreads on CXDO reduce the cost of a bearish CXDO 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 CXDO implied volatility affect this bear put spread?
- CXDO ATM IV is at 82.50% with IV rank near 28.05%, 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.