GPI Bear Put Spread Strategy
GPI (Group 1 Automotive, Inc.), in the Consumer Cyclical sector, (Auto - Dealerships industry), listed on NYSE.
Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. It operates primarily in 17 states in the United States; and 35 towns in the United Kingdom. As of July 11, 2022, the company owned and operated 204 automotive dealerships, 273 franchises, and 47 collision centers that offer 35 brands of automobiles. Group 1 Automotive, Inc. was incorporated in 1995 and is based in Houston, Texas.
GPI (Group 1 Automotive, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Dealerships, with a market capitalization of approximately $3.90B, a trailing P/E of 12.06, a beta of 0.87 versus the broader market, a 52-week range of 292.44-488.39, average daily share volume of 192K, a public-listing history dating back to 1997, approximately 20K full-time employees. These structural characteristics shape how GPI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.87 places GPI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GPI 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 GPI?
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 GPI snapshot
As of May 15, 2026, spot at $316.58, ATM IV 36.50%, IV rank 47.17%, expected move 10.46%. The bear put spread on GPI 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 GPI specifically: GPI IV at 36.50% 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 10.46% (roughly $33.13 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 GPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on GPI should anchor to the underlying notional of $316.58 per share and to the trader's directional view on GPI stock.
GPI bear put spread setup
The GPI 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 GPI near $316.58, the first option leg uses a $320.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GPI 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 GPI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $320.00 | $15.05 |
| Sell 1 | Put | $300.00 | $6.60 |
GPI bear put spread risk and reward
- Net Premium / Debit
- -$845.00
- Max Profit (per contract)
- $1,155.00
- Max Loss (per contract)
- -$845.00
- Breakeven(s)
- $311.55
- Risk / Reward Ratio
- 1.367
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.
GPI bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on GPI. 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% | +$1,155.00 |
| $70.01 | -77.9% | +$1,155.00 |
| $140.00 | -55.8% | +$1,155.00 |
| $210.00 | -33.7% | +$1,155.00 |
| $280.00 | -11.6% | +$1,155.00 |
| $349.99 | +10.6% | -$845.00 |
| $419.99 | +32.7% | -$845.00 |
| $489.99 | +54.8% | -$845.00 |
| $559.98 | +76.9% | -$845.00 |
| $629.98 | +99.0% | -$845.00 |
When traders use bear put spread on GPI
Bear put spreads on GPI reduce the cost of a bearish GPI stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
GPI thesis for this bear put spread
The market-implied 1-standard-deviation range for GPI extends from approximately $283.45 on the downside to $349.71 on the upside. A GPI bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on GPI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current GPI IV rank near 47.17% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on GPI should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, GPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GPI-specific events.
GPI 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. GPI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GPI alongside the broader basket even when GPI-specific fundamentals are unchanged. Long-premium structures like a bear put spread on GPI 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 GPI chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on GPI?
- A bear put spread on GPI is the bear put spread strategy applied to GPI (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 GPI stock trading near $316.58, the strikes shown on this page are snapped to the nearest listed GPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GPI 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 GPI bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 36.50%), the computed maximum profit is $1,155.00 per contract and the computed maximum loss is -$845.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GPI bear put spread?
- The breakeven for the GPI bear put spread priced on this page is roughly $311.55 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 GPI market-implied 1-standard-deviation expected move is approximately 10.46%; 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 GPI?
- Bear put spreads on GPI reduce the cost of a bearish GPI 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 GPI implied volatility affect this bear put spread?
- GPI ATM IV is at 36.50% with IV rank near 47.17%, 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.