GPGI Bear Put Spread Strategy
GPGI (GPGI, Inc.), in the Industrials sector, (Manufacturing - Metal Fabrication industry), listed on NYSE.
GPGI, Inc. operates as a diversified holding company, focusing on the strategic acquisition, ownership, and growth of high-quality enterprises across various sectors. Its principal business units include CompoSecure, a specialist in metal payment cards, security, and authentication technologies, and Husky Technologies, a prominent producer of injection molding machinery and integrated systems. The company, which was established in 2000 and is headquartered in Somerset, New Jersey, rebranded from its former name, CompoSecure, Inc., to GPGI, Inc. in January 2026.
GPGI (GPGI, Inc.) trades in the Industrials sector, specifically Manufacturing - Metal Fabrication, with a market capitalization of approximately $3.85B, a beta of 0.86 versus the broader market, a 52-week range of 11.22-26.78, average daily share volume of 2.5M, a public-listing history dating back to 2020, approximately 971 full-time employees. These structural characteristics shape how GPGI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places GPGI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GPGI 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 GPGI?
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.
GPGI snapshot
As of August 14, 2026, spot at $12.77, ATM IV 59.30%, IV rank 9.13%, expected move 17.00%. The bear put spread on GPGI below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bear put spread structure on GPGI specifically: GPGI IV at 59.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a GPGI bear put spread, with a market-implied 1-standard-deviation move of approximately 17.00% (roughly $2.17 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GPGI expiries trade a higher absolute premium for lower per-day decay. Position sizing on GPGI should anchor to the underlying notional of $12.77 per share and to the trader's directional view on GPGI stock.
GPGI bear put spread setup
The GPGI 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 GPGI at $12.77 on that close, the first option leg uses a $12.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GPGI chain at a 35-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 GPGI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $12.77 | N/A |
| Sell 1 | Put | $12.13 | N/A |
GPGI 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.
GPGI bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on GPGI. 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 GPGI
Bear put spreads on GPGI reduce the cost of a bearish GPGI stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
GPGI thesis for this bear put spread
The market-implied 1-standard-deviation range for GPGI extends from approximately $10.60 on the downside to $14.94 on the upside. A GPGI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on GPGI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current GPGI IV rank near 9.13% 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 GPGI at 59.30%. As a Industrials name, GPGI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GPGI-specific events.
GPGI 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. GPGI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GPGI alongside the broader basket even when GPGI-specific fundamentals are unchanged. Long-premium structures like a bear put spread on GPGI 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 GPGI chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on GPGI?
- A bear put spread on GPGI is the bear put spread strategy applied to GPGI (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 GPGI stock at $12.77 on the most recent close, the strikes shown on this page are snapped to the nearest listed GPGI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are GPGI 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 GPGI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 59.30%), 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 GPGI bear put spread?
- The breakeven for the GPGI bear put spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The GPGI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.00%; 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 GPGI?
- Bear put spreads on GPGI reduce the cost of a bearish GPGI 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 GPGI implied volatility affect this bear put spread?
- GPGI ATM IV is at 59.30% with IV rank near 9.13%, 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.