How are GD long put max profit and max loss calculated?

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the GD long put priced from the end-of-day chain at a 30-day expiry (ATM IV 20.67%), the computed maximum profit is $32,754.00 per contract and the computed maximum loss is -$745.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GD long put?

The breakeven for the GD long put priced on this page is roughly $327.55 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 GD market-implied 1-standard-deviation expected move is approximately 5.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GD implied volatility affect this long put?

GD ATM IV is at 20.67% with IV rank near 39.09%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

GD Long Put Strategy

GD (General Dynamics Corporation), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment designs, manufactures, and sells business jets; and offers aircraft maintenance and repair, management, charter, aircraft-on-ground support and completion, staffing, and fixed-base operator services. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy and Jones Act ships for commercial customers, as well as builds crude oil and product tankers, and container and cargo ships. This segment also provides navy ships maintenance and modernization services; lifecycle support and repair services for navy surface ships; and program management, planning, engineering, and design support services for submarines and surface ships. The Combat Systems segment manufactures land combat solutions, such as wheeled and tracked combat vehicles, Stryker wheeled combat vehicles, piranha vehicles, weapons systems, munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, armored vehicles, and armaments.

GD (General Dynamics Corporation) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $92.31B, a trailing P/E of 21.25, a beta of 0.35 versus the broader market, a 52-week range of 268.1-369.7, average daily share volume of 1.4M, a public-listing history dating back to 1978, approximately 110K full-time employees. These structural characteristics shape how GD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.35 indicates GD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on GD?

A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.

Current GD snapshot

As of May 15, 2026, spot at $334.60, ATM IV 20.67%, IV rank 39.09%, expected move 5.93%. The long put on GD 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 28-day expiry.

Why this long put structure on GD specifically: GD IV at 20.67% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 5.93% (roughly $19.83 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GD expiries trade a higher absolute premium for lower per-day decay. Position sizing on GD should anchor to the underlying notional of $334.60 per share and to the trader's directional view on GD stock.

GD long put setup

The GD long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GD near $334.60, the first option leg uses a $335.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GD chain at a 28-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 GD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$335.00	$7.45

GD long put risk and reward

Net Premium / Debit: -$745.00
Max Profit (per contract): $32,754.00
Max Loss (per contract): -$745.00
Breakeven(s): $327.55
Risk / Reward Ratio: 43.965

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

GD long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on GD. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$32,754.00
$73.99	-77.9%	+$25,355.92
$147.97	-55.8%	+$17,957.84
$221.95	-33.7%	+$10,559.76
$295.93	-11.6%	+$3,161.68
$369.91	+10.6%	-$745.00
$443.89	+32.7%	-$745.00
$517.88	+54.8%	-$745.00
$591.86	+76.9%	-$745.00
$665.84	+99.0%	-$745.00

When traders use long put on GD

Long puts on GD hedge an existing long GD stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying GD exposure being hedged.

GD thesis for this long put

The market-implied 1-standard-deviation range for GD extends from approximately $314.77 on the downside to $354.43 on the upside. A GD long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long GD position with one put per 100 shares held. Current GD IV rank near 39.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on GD should anchor more to the directional view and the expected-move geometry. As a Industrials name, GD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GD-specific events.

GD long put positions are structurally 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. GD positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GD alongside the broader basket even when GD-specific fundamentals are unchanged. Long-premium structures like a long put on GD 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 GD chain quotes before placing a trade.

Frequently asked questions

What is a long put on GD?: A long put on GD is the long put strategy applied to GD (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With GD stock trading near $334.60, the strikes shown on this page are snapped to the nearest listed GD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GD long put max profit and max loss calculated?: Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the GD long put priced from the end-of-day chain at a 30-day expiry (ATM IV 20.67%), the computed maximum profit is $32,754.00 per contract and the computed maximum loss is -$745.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GD long put?: The breakeven for the GD long put priced on this page is roughly $327.55 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 GD market-implied 1-standard-deviation expected move is approximately 5.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a long put on GD?: Long puts on GD hedge an existing long GD stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying GD exposure being hedged.
How does current GD implied volatility affect this long put?: GD ATM IV is at 20.67% with IV rank near 39.09%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.