SGC Bear Put Spread Strategy
SGC (Superior Group of Companies, Inc.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NASDAQ.
Superior Group of Companies, Inc. (SGC) is an established enterprise, founded in 1920 and based in Seminole, Florida. The company, which operated as Superior Uniform Group, Inc. until its renaming in May 2018, specializes in the creation and distribution of clothing and complementary items for a global market, spanning both domestic and international clients. SGC's operations are divided into three core business units: 1. Professional Apparel and Associated Products: This division focuses on manufacturing and selling a diverse range of uniforms, branded corporate attire, professional workwear, and related accessories. Their comprehensive client base includes staff in medical and healthcare environments, hotels, various food service and restaurant establishments, retail outlets, specialized industrial sites, commercial businesses, transportation companies, and both public and private security organizations. Additionally, this segment supplies goods directly linked to uniforms and service apparel, such as heavy-duty laundry bags for linen providers, personal protective equipment (PPE), and promotional items tailored for marketing campaigns, corporate recognition, incentive schemes, event promotions, and specialized packaging solutions.
SGC (Superior Group of Companies, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $199.3M, a trailing P/E of 21.71, a beta of 1.43 versus the broader market, a 52-week range of 8.3-14.59, average daily share volume of 42K, a public-listing history dating back to 1992, approximately 7K full-time employees. These structural characteristics shape how SGC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates SGC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SGC 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 SGC?
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 SGC snapshot
As of June 30, 2026, spot at $13.17, ATM IV 87.60%, IV rank 19.48%, expected move 25.11%. The bear put spread on SGC 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 17-day expiry.
Why this bear put spread structure on SGC specifically: SGC IV at 87.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a SGC bear put spread, with a market-implied 1-standard-deviation move of approximately 25.11% (roughly $3.31 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SGC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGC should anchor to the underlying notional of $13.17 per share and to the trader's directional view on SGC stock.
SGC bear put spread setup
The SGC 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 SGC near $13.17, the first option leg uses a $13.17 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGC chain at a 17-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 SGC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $13.17 | N/A |
| Sell 1 | Put | $12.51 | N/A |
SGC 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.
SGC bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on SGC. 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 SGC
Bear put spreads on SGC reduce the cost of a bearish SGC stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
SGC thesis for this bear put spread
The market-implied 1-standard-deviation range for SGC extends from approximately $9.86 on the downside to $16.48 on the upside. A SGC bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on SGC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SGC IV rank near 19.48% 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 SGC at 87.60%. As a Consumer Cyclical name, SGC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGC-specific events.
SGC 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. SGC positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGC alongside the broader basket even when SGC-specific fundamentals are unchanged. Long-premium structures like a bear put spread on SGC 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 SGC chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on SGC?
- A bear put spread on SGC is the bear put spread strategy applied to SGC (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 SGC stock trading near $13.17, the strikes shown on this page are snapped to the nearest listed SGC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SGC 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 SGC bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 87.60%), 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 SGC bear put spread?
- The breakeven for the SGC 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 SGC market-implied 1-standard-deviation expected move is approximately 25.11%; 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 SGC?
- Bear put spreads on SGC reduce the cost of a bearish SGC 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 SGC implied volatility affect this bear put spread?
- SGC ATM IV is at 87.60% with IV rank near 19.48%, 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.