LODE Bear Put Spread Strategy
LODE (Comstock Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on AMEX.
Comstock Inc. engages in the exploration, development, and production of mineral properties in Nevada. The company explores for gold, silver, lithium, nickel, cobalt, and mercury ores. It operates in two segments, Mining and Real Estate. The Mining segment owns and controls approximately 9,358 acres of mining claims and parcels, including approximately 2,396 acres of patented claims and surface parcels; and approximately 6,962 acres of unpatented mining claims in the Comstock and Silver City districts, as well as focuses on exploring and developing properties in the Lucerne and Dayton resource areas; and Occidental and Gold Hill mineral properties. The Real Estate segment comprises land and real estate rental properties, as well as the Gold Hill Hotel and Daney Ranch properties. It has collaboration agreements with Oro Industries Inc. and Mercury Clean Up, LLC for the manufacture and deployment of mercury remediation systems with proprietary mechanical, hydro, electro-chemical, and oxidation processes to reclaim and remediate mercury from soils, waste, and tailings.
LODE (Comstock Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $127.3M, a beta of 1.31 versus the broader market, a 52-week range of 2.24-4.8, average daily share volume of 1.2M, a public-listing history dating back to 2010, approximately 46 full-time employees. These structural characteristics shape how LODE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.31 indicates LODE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bear put spread on LODE?
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 LODE snapshot
As of May 14, 2026, spot at $3.35, ATM IV 58.30%, IV rank 19.09%, expected move 16.71%. The bear put spread on LODE 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 35-day expiry.
Why this bear put spread structure on LODE specifically: LODE IV at 58.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a LODE bear put spread, with a market-implied 1-standard-deviation move of approximately 16.71% (roughly $0.56 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 LODE expiries trade a higher absolute premium for lower per-day decay. Position sizing on LODE should anchor to the underlying notional of $3.35 per share and to the trader's directional view on LODE stock.
LODE bear put spread setup
The LODE 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 LODE near $3.35, the first option leg uses a $3.35 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LODE 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 LODE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $3.35 | N/A |
| Sell 1 | Put | $3.18 | N/A |
LODE 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.
LODE bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on LODE. 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 LODE
Bear put spreads on LODE reduce the cost of a bearish LODE stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
LODE thesis for this bear put spread
The market-implied 1-standard-deviation range for LODE extends from approximately $2.79 on the downside to $3.91 on the upside. A LODE bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LODE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LODE IV rank near 19.09% 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 LODE at 58.30%. As a Real Estate name, LODE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LODE-specific events.
LODE 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. LODE positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LODE alongside the broader basket even when LODE-specific fundamentals are unchanged. Long-premium structures like a bear put spread on LODE 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 LODE chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on LODE?
- A bear put spread on LODE is the bear put spread strategy applied to LODE (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 LODE stock trading near $3.35, the strikes shown on this page are snapped to the nearest listed LODE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LODE 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 LODE bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 58.30%), 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 LODE bear put spread?
- The breakeven for the LODE 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 LODE market-implied 1-standard-deviation expected move is approximately 16.71%; 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 LODE?
- Bear put spreads on LODE reduce the cost of a bearish LODE 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 LODE implied volatility affect this bear put spread?
- LODE ATM IV is at 58.30% with IV rank near 19.09%, 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.