GT Bear Put Spread Strategy
GT (The Goodyear Tire & Rubber Company), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. It offers various lines of tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving equipment, and mining and industrial equipment under the Goodyear, Cooper, Dunlop, Kelly, Debica, Sava, Fulda, Mastercraft, Roadmaster, and various other house brands, as well as under the private-label brands. The company also retreads truck, aviation, and off-the-road tires; manufactures and sells tread rubber and other tire retreading materials; sells chemical and natural rubber products; and provides automotive and commercial truck maintenance and repair services, and miscellaneous other products and services. It operates approximately 1,000 retail outlets, which offer products for retail sale, and provides repair and other services. The company sells its products worldwide through a network of independent dealers, regional distributors, retail outlets, and retailers. The Goodyear Tire & Rubber Company was incorporated in 1898 and is headquartered in Akron, Ohio.
GT (The Goodyear Tire & Rubber Company) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $1.67B, a beta of 1.18 versus the broader market, a 52-week range of 5.73-12.03, average daily share volume of 8.3M, a public-listing history dating back to 1927, approximately 68K full-time employees. These structural characteristics shape how GT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places GT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bear put spread on GT?
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 GT snapshot
As of May 15, 2026, spot at $5.67, ATM IV 54.00%, IV rank 10.46%, expected move 15.48%. The bear put spread on GT 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 GT specifically: GT IV at 54.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a GT bear put spread, with a market-implied 1-standard-deviation move of approximately 15.48% (roughly $0.88 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 GT expiries trade a higher absolute premium for lower per-day decay. Position sizing on GT should anchor to the underlying notional of $5.67 per share and to the trader's directional view on GT stock.
GT bear put spread setup
The GT 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 GT near $5.67, the first option leg uses a $5.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GT 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 GT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $5.67 | N/A |
| Sell 1 | Put | $5.39 | N/A |
GT 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.
GT bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on GT. 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 GT
Bear put spreads on GT reduce the cost of a bearish GT stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
GT thesis for this bear put spread
The market-implied 1-standard-deviation range for GT extends from approximately $4.79 on the downside to $6.55 on the upside. A GT bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on GT, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current GT IV rank near 10.46% 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 GT at 54.00%. As a Consumer Cyclical name, GT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GT-specific events.
GT 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. GT positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GT alongside the broader basket even when GT-specific fundamentals are unchanged. Long-premium structures like a bear put spread on GT 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 GT chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on GT?
- A bear put spread on GT is the bear put spread strategy applied to GT (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 GT stock trading near $5.67, the strikes shown on this page are snapped to the nearest listed GT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GT 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 GT bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 54.00%), 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 GT bear put spread?
- The breakeven for the GT 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 GT market-implied 1-standard-deviation expected move is approximately 15.48%; 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 GT?
- Bear put spreads on GT reduce the cost of a bearish GT 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 GT implied volatility affect this bear put spread?
- GT ATM IV is at 54.00% with IV rank near 10.46%, 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.