GASS Bear Put Spread Strategy
GASS (StealthGas Inc.), in the Industrials sector, (Marine Shipping industry), listed on NASDAQ.
StealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users internationally. It also provides crude oil and natural gas. The company's carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene, and vinyl chloride monomer; and refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals. As of December 31, 2021, it had a fleet of 44 LPG carriers with a total capacity of 389,426 cubic meters; three medium range product carriers with a total capacity of 140,000 deadweight tons (dwt); and one Aframax crude oil tanker with a total capacity of 115,804 dwt. StealthGas Inc. was incorporated in 2004 and is based in Athens, Greece.
GASS (StealthGas Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $375.2M, a trailing P/E of 6.01, a beta of 0.25 versus the broader market, a 52-week range of 5.22-10.52, average daily share volume of 168K, a public-listing history dating back to 2005, approximately 602 full-time employees. These structural characteristics shape how GASS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.25 indicates GASS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 6.01 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 GASS?
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 GASS snapshot
As of May 15, 2026, spot at $10.09, ATM IV 49.60%, IV rank 7.93%, expected move 14.22%. The bear put spread on GASS 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 GASS specifically: GASS IV at 49.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a GASS bear put spread, with a market-implied 1-standard-deviation move of approximately 14.22% (roughly $1.43 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 GASS expiries trade a higher absolute premium for lower per-day decay. Position sizing on GASS should anchor to the underlying notional of $10.09 per share and to the trader's directional view on GASS stock.
GASS bear put spread setup
The GASS 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 GASS near $10.09, the first option leg uses a $10.09 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GASS 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 GASS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $10.09 | N/A |
| Sell 1 | Put | $9.59 | N/A |
GASS 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.
GASS bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on GASS. 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 GASS
Bear put spreads on GASS reduce the cost of a bearish GASS stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
GASS thesis for this bear put spread
The market-implied 1-standard-deviation range for GASS extends from approximately $8.66 on the downside to $11.52 on the upside. A GASS bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on GASS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current GASS IV rank near 7.93% 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 GASS at 49.60%. As a Industrials name, GASS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GASS-specific events.
GASS 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. GASS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GASS alongside the broader basket even when GASS-specific fundamentals are unchanged. Long-premium structures like a bear put spread on GASS 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 GASS chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on GASS?
- A bear put spread on GASS is the bear put spread strategy applied to GASS (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 GASS stock trading near $10.09, the strikes shown on this page are snapped to the nearest listed GASS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GASS 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 GASS bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 49.60%), 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 GASS bear put spread?
- The breakeven for the GASS 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 GASS market-implied 1-standard-deviation expected move is approximately 14.22%; 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 GASS?
- Bear put spreads on GASS reduce the cost of a bearish GASS 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 GASS implied volatility affect this bear put spread?
- GASS ATM IV is at 49.60% with IV rank near 7.93%, 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.