How are CARZ 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 CARZ long put priced from the end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $10,721.50 per contract and the computed maximum loss is -$277.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CARZ long put?

The breakeven for the CARZ long put priced on this page is roughly $107.23 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 CARZ market-implied 1-standard-deviation expected move is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CARZ implied volatility affect this long put?

CARZ ATM IV is at 24.70% with IV rank near 0.90%, 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.

CARZ Long Put Strategy

CARZ (First Trust S-Network Future Vehicles & Technology ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The First Trust S-Network Future Vehicles & Technology ETF (the "Fund"), formerly First Trust NASDAQ Global Auto Index Fund, seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the S-Network Electric & Future Vehicle Ecosystem Index (the "Index"). The Fund will normally invest at least 90% of its net assets (plus any borrowings for investment purposes) in the common stocks and depository receipts that comprise the Index.

CARZ (First Trust S-Network Future Vehicles & Technology ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $51.1M, a beta of 1.66 versus the broader market, a 52-week range of 56.41-116.26, average daily share volume of 3K, a public-listing history dating back to 2011. These structural characteristics shape how CARZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.66 indicates CARZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CARZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on CARZ?

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.

Current CARZ snapshot

As of May 15, 2026, spot at $110.75, ATM IV 24.70%, IV rank 0.90%, expected move 7.08%. The long put on CARZ 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 long put structure on CARZ specifically: CARZ IV at 24.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a CARZ long put, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $7.84 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 CARZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on CARZ should anchor to the underlying notional of $110.75 per share and to the trader's directional view on CARZ etf.

CARZ long put setup

The CARZ long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CARZ near $110.75, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CARZ 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 CARZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$110.00	$2.78

CARZ long put risk and reward

Net Premium / Debit: -$277.50
Max Profit (per contract): $10,721.50
Max Loss (per contract): -$277.50
Breakeven(s): $107.23
Risk / Reward Ratio: 38.636

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

CARZ long put payoff curve

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

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$10,721.50
$24.50	-77.9%	+$8,272.87
$48.98	-55.8%	+$5,824.23
$73.47	-33.7%	+$3,375.60
$97.96	-11.6%	+$926.97
$122.44	+10.6%	-$277.50
$146.93	+32.7%	-$277.50
$171.41	+54.8%	-$277.50
$195.90	+76.9%	-$277.50
$220.39	+99.0%	-$277.50

When traders use long put on CARZ

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

CARZ thesis for this long put

The market-implied 1-standard-deviation range for CARZ extends from approximately $102.91 on the downside to $118.59 on the upside. A CARZ long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long CARZ position with one put per 100 shares held. Current CARZ IV rank near 0.90% 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 CARZ at 24.70%. As a Financial Services name, CARZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CARZ-specific events.

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

Frequently asked questions

What is a long put on CARZ?: A long put on CARZ is the long put strategy applied to CARZ (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 CARZ etf trading near $110.75, the strikes shown on this page are snapped to the nearest listed CARZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CARZ 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 CARZ long put priced from the end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $10,721.50 per contract and the computed maximum loss is -$277.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CARZ long put?: The breakeven for the CARZ long put priced on this page is roughly $107.23 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 CARZ market-implied 1-standard-deviation expected move is approximately 7.08%; 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 CARZ?: Long puts on CARZ hedge an existing long CARZ etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CARZ exposure being hedged.
How does current CARZ implied volatility affect this long put?: CARZ ATM IV is at 24.70% with IV rank near 0.90%, 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.