GNE Bear Put Spread Strategy
GNE (Genie Energy Ltd.), in the Utilities sector, (Regulated Electric industry), listed on NYSE.
Genie Energy Ltd., through its subsidiaries, supplies electricity and natural gas to residential and small business customers in the United States, Finland, Sweden, Japan, and internationally. It operates in three segments: Genie Retail Energy (GRE); GRE International; and Genie Renewables. The company also engages in the provision of energy advisory and brokerage services; solar panel manufacturing and distribution; solar installation design; and project management activities. Genie Energy Ltd. was incorporated in 2011 and is headquartered in Newark, New Jersey.
GNE (Genie Energy Ltd.) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $368.6M, a trailing P/E of 14.58, a beta of 0.20 versus the broader market, a 52-week range of 13.19-28.47, average daily share volume of 56K, a public-listing history dating back to 2011, approximately 152 full-time employees. These structural characteristics shape how GNE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.20 indicates GNE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GNE 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 GNE?
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 GNE snapshot
As of May 15, 2026, spot at $13.46, ATM IV 63.40%, IV rank 12.37%, expected move 18.18%. The bear put spread on GNE 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 GNE specifically: GNE IV at 63.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a GNE bear put spread, with a market-implied 1-standard-deviation move of approximately 18.18% (roughly $2.45 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 GNE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GNE should anchor to the underlying notional of $13.46 per share and to the trader's directional view on GNE stock.
GNE bear put spread setup
The GNE 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 GNE near $13.46, the first option leg uses a $13.46 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GNE 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 GNE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $13.46 | N/A |
| Sell 1 | Put | $12.79 | N/A |
GNE 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.
GNE bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on GNE. 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 GNE
Bear put spreads on GNE reduce the cost of a bearish GNE stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
GNE thesis for this bear put spread
The market-implied 1-standard-deviation range for GNE extends from approximately $11.01 on the downside to $15.91 on the upside. A GNE bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on GNE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current GNE IV rank near 12.37% 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 GNE at 63.40%. As a Utilities name, GNE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GNE-specific events.
GNE 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. GNE positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GNE alongside the broader basket even when GNE-specific fundamentals are unchanged. Long-premium structures like a bear put spread on GNE 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 GNE chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on GNE?
- A bear put spread on GNE is the bear put spread strategy applied to GNE (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 GNE stock trading near $13.46, the strikes shown on this page are snapped to the nearest listed GNE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GNE 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 GNE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 63.40%), 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 GNE bear put spread?
- The breakeven for the GNE 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 GNE market-implied 1-standard-deviation expected move is approximately 18.18%; 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 GNE?
- Bear put spreads on GNE reduce the cost of a bearish GNE 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 GNE implied volatility affect this bear put spread?
- GNE ATM IV is at 63.40% with IV rank near 12.37%, 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.