EPI Long Put Strategy
EPI (WisdomTree India Earnings Fund), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
WisdomTree India Earnings Fund seeks to track the investment results of profitable companies in the Indian equity market. EPI offers exposure to Indian equities, weighting individual holdings by earnings instead of market capitalization. The fund tracks the WisdomTree India Earnings Index, which is composed of profitable companies incorporated and traded in India and weighted based on their earnings.
EPI (WisdomTree India Earnings Fund) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $2.12B, a beta of 0.64 versus the broader market, a 52-week range of 39.41-47.2, average daily share volume of 518K, a public-listing history dating back to 2008. These structural characteristics shape how EPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates EPI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EPI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on EPI?
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.
EPI snapshot
As of August 14, 2026, spot at $43.00, ATM IV 14.70%, IV rank 2.76%, expected move 4.21%. The long put on EPI below is built from the August 14, 2026 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 long put structure on EPI specifically: EPI IV at 14.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a EPI long put, with a market-implied 1-standard-deviation move of approximately 4.21% (roughly $1.81 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 EPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on EPI should anchor to the underlying notional of $43.00 per share and to the trader's directional view on EPI etf.
EPI long put setup
The EPI long put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With EPI at $43.00 on that close, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EPI 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 EPI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $43.00 | $0.78 |
EPI long put risk and reward
- Net Premium / Debit
- -$77.50
- Max Profit (per contract)
- $4,221.50
- Max Loss (per contract)
- -$77.50
- Breakeven(s)
- $42.23
- Risk / Reward Ratio
- 54.471
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
EPI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on EPI. 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% | +$4,221.50 |
| $9.52 | -77.9% | +$3,270.86 |
| $19.02 | -55.8% | +$2,320.21 |
| $28.53 | -33.7% | +$1,369.57 |
| $38.04 | -11.5% | +$418.93 |
| $47.54 | +10.6% | -$77.50 |
| $57.05 | +32.7% | -$77.50 |
| $66.56 | +54.8% | -$77.50 |
| $76.06 | +76.9% | -$77.50 |
| $85.57 | +99.0% | -$77.50 |
When traders use long put on EPI
Long puts on EPI hedge an existing long EPI etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying EPI exposure being hedged.
EPI thesis for this long put
The market-implied 1-standard-deviation range for EPI extends from approximately $41.19 on the downside to $44.81 on the upside. A EPI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long EPI position with one put per 100 shares held. Current EPI IV rank near 2.76% 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 EPI at 14.70%. As a Financial Services name, EPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EPI-specific events.
EPI 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. EPI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EPI alongside the broader basket even when EPI-specific fundamentals are unchanged. Long-premium structures like a long put on EPI 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 EPI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on EPI?
- A long put on EPI is the long put strategy applied to EPI (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 EPI etf at $43.00 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed EPI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are EPI 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 EPI long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 14.70%), the computed maximum profit is $4,221.50 per contract and the computed maximum loss is -$77.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EPI long put?
- The breakeven for the EPI long put priced on this page is roughly $42.23 at expiration, derived from the August 14, 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 EPI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.21%; 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 EPI?
- Long puts on EPI hedge an existing long EPI etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying EPI exposure being hedged.
- How does current EPI implied volatility affect this long put?
- EPI ATM IV is at 14.70% with IV rank near 2.76%, 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.