TUSK Bear Put Spread Strategy
TUSK (Mammoth Energy Services, Inc.), in the Industrials sector, (Conglomerates industry), listed on NASDAQ.
Mammoth Energy Services, Inc. operates as an energy service company. The company operates in four segments: Infrastructure Services, Well Completion Services, Natural Sand Proppant Services, and Drilling Services. The Infrastructure Services segment offers a range of services on electric transmission and distribution, and networks and substation facilities, including engineering, design, construction, upgrade, maintenance, and repair of high voltage transmission lines, substations, and lower voltage overhead and underground distribution systems; storm repair and restoration services; and commercial services comprising installation, maintenance, and repair of commercial wiring. The Well Completion Services segment provides high-pressure hydraulic fracturing services to enhance the production of oil and natural gas from formations having low permeability, and sand hauling and water transfer services. The Natural Sand Proppant Services segment is involved in mining, processing, and selling natural sand proppant used for hydraulic fracturing; buying processed sand from suppliers on the spot market and reselling that sand; and providing logistics solutions to facilitate delivery of frac sand products. The Drilling Services segment offers contract land and directional drilling services, as well as rig moving services.
TUSK (Mammoth Energy Services, Inc.) trades in the Industrials sector, specifically Conglomerates, with a market capitalization of approximately $157.6M, a beta of 1.09 versus the broader market, a 52-week range of 1.715-3.33, average daily share volume of 285K, a public-listing history dating back to 2016, approximately 639 full-time employees. These structural characteristics shape how TUSK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.09 places TUSK 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 TUSK?
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 TUSK snapshot
As of May 15, 2026, spot at $3.23, ATM IV 68.10%, IV rank 12.99%, expected move 19.52%. The bear put spread on TUSK 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 TUSK specifically: TUSK IV at 68.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a TUSK bear put spread, with a market-implied 1-standard-deviation move of approximately 19.52% (roughly $0.63 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 TUSK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TUSK should anchor to the underlying notional of $3.23 per share and to the trader's directional view on TUSK stock.
TUSK bear put spread setup
The TUSK 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 TUSK near $3.23, the first option leg uses a $3.23 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TUSK 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 TUSK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $3.23 | N/A |
| Sell 1 | Put | $3.07 | N/A |
TUSK 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.
TUSK bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on TUSK. 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 TUSK
Bear put spreads on TUSK reduce the cost of a bearish TUSK stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
TUSK thesis for this bear put spread
The market-implied 1-standard-deviation range for TUSK extends from approximately $2.60 on the downside to $3.86 on the upside. A TUSK bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on TUSK, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TUSK IV rank near 12.99% 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 TUSK at 68.10%. As a Industrials name, TUSK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TUSK-specific events.
TUSK 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. TUSK positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TUSK alongside the broader basket even when TUSK-specific fundamentals are unchanged. Long-premium structures like a bear put spread on TUSK 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 TUSK chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on TUSK?
- A bear put spread on TUSK is the bear put spread strategy applied to TUSK (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 TUSK stock trading near $3.23, the strikes shown on this page are snapped to the nearest listed TUSK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TUSK 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 TUSK bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 68.10%), 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 TUSK bear put spread?
- The breakeven for the TUSK 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 TUSK market-implied 1-standard-deviation expected move is approximately 19.52%; 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 TUSK?
- Bear put spreads on TUSK reduce the cost of a bearish TUSK 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 TUSK implied volatility affect this bear put spread?
- TUSK ATM IV is at 68.10% with IV rank near 12.99%, 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.