AFRU Long Put Strategy

AFRU (T-REX 2X Long AFRM Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

AFRU primarily uses swap agreements to make bullish bets on the share price of Affirm Holdings, Inc. (NASDAQ: AFRM). Additionally, the fund may purchase FLEX call options on AFRM or invest directly in the stocks of AFRM. AFRM is a US technology company that provides financial services for shoppers and merchants. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in AFRM price through daily rebalancing. As a leveraged product, it is designed for short-term tactical use, not as a long-term investment vehicle. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility and compounding effects.

AFRU (T-REX 2X Long AFRM Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.0M, a beta of 6.81 versus the broader market, a 52-week range of 4.045-19.24, average daily share volume of 50K, a public-listing history dating back to 2025. These structural characteristics shape how AFRU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 6.81 indicates AFRU 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 long put on AFRU?

A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.

AFRU snapshot

As of September 29, 2026, spot at $8.43, ATM IV 102.60%, IV rank 23.65%, expected move 29.41%. The long put on AFRU below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.

Why this long put structure on AFRU specifically: AFRU IV at 102.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a AFRU long put, with a market-implied 1-standard-deviation move of approximately 29.41% (roughly $2.48 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AFRU expiries trade a higher absolute premium for lower per-day decay. Position sizing on AFRU should anchor to the underlying notional of $8.43 per share and to the trader's directional view on AFRU etf.

AFRU long put setup

The AFRU long put below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AFRU at $8.43 on that close, the first option leg uses a $8.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AFRU chain at a 80-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 AFRU shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Put$8.43N/A

AFRU long put 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 the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

AFRU long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on AFRU. 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 long put on AFRU

Long puts on AFRU hedge an existing long AFRU etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AFRU exposure being hedged.

AFRU thesis for this long put

The market-implied 1-standard-deviation range for AFRU extends from approximately $5.95 on the downside to $10.91 on the upside. A AFRU long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long AFRU position with one put per 100 shares held. Current AFRU IV rank near 23.65% 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 AFRU at 102.60%. As a Financial Services name, AFRU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AFRU-specific events.

AFRU long put positions are structurally 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. AFRU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AFRU alongside the broader basket even when AFRU-specific fundamentals are unchanged. Long-premium structures like a long put on AFRU 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 AFRU chain quotes before placing a trade.

Frequently asked questions

What is a long put on AFRU?
A long put on AFRU is the long put strategy applied to AFRU (etf). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With AFRU etf at $8.43 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed AFRU chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AFRU long put max profit and max loss calculated?
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the AFRU long put priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 102.60%), 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 AFRU long put?
The breakeven for the AFRU long put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AFRU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 29.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a long put on AFRU?
Long puts on AFRU hedge an existing long AFRU etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AFRU exposure being hedged.
How does current AFRU implied volatility affect this long put?
AFRU ATM IV is at 102.60% with IV rank near 23.65%, 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.

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