FLMX Long Put Strategy
FLMX (Franklin FTSE Mexico ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico RIC Capped Index (the FTSE Mexico Capped Index).
FLMX (Franklin FTSE Mexico ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $89.9M, a beta of 1.07 versus the broader market, a 52-week range of 28.13-40.03, average daily share volume of 28K, a public-listing history dating back to 2017. These structural characteristics shape how FLMX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places FLMX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FLMX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on FLMX?
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 FLMX snapshot
As of May 15, 2026, spot at $37.71, ATM IV 31.80%, IV rank 25.80%, expected move 9.12%. The long put on FLMX 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 FLMX specifically: FLMX IV at 31.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a FLMX long put, with a market-implied 1-standard-deviation move of approximately 9.12% (roughly $3.44 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 FLMX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLMX should anchor to the underlying notional of $37.71 per share and to the trader's directional view on FLMX etf.
FLMX long put setup
The FLMX 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 FLMX near $37.71, the first option leg uses a $37.71 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLMX 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 FLMX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $37.71 | N/A |
FLMX 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.
FLMX long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on FLMX. 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 FLMX
Long puts on FLMX hedge an existing long FLMX etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying FLMX exposure being hedged.
FLMX thesis for this long put
The market-implied 1-standard-deviation range for FLMX extends from approximately $34.27 on the downside to $41.15 on the upside. A FLMX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long FLMX position with one put per 100 shares held. Current FLMX IV rank near 25.80% 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 FLMX at 31.80%. As a Financial Services name, FLMX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLMX-specific events.
FLMX 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. FLMX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLMX alongside the broader basket even when FLMX-specific fundamentals are unchanged. Long-premium structures like a long put on FLMX 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 FLMX chain quotes before placing a trade.
Frequently asked questions
- What is a long put on FLMX?
- A long put on FLMX is the long put strategy applied to FLMX (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 FLMX etf trading near $37.71, the strikes shown on this page are snapped to the nearest listed FLMX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FLMX 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 FLMX long put priced from the end-of-day chain at a 30-day expiry (ATM IV 31.80%), 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 FLMX long put?
- The breakeven for the FLMX long put 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 FLMX market-implied 1-standard-deviation expected move is approximately 9.12%; 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 FLMX?
- Long puts on FLMX hedge an existing long FLMX etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying FLMX exposure being hedged.
- How does current FLMX implied volatility affect this long put?
- FLMX ATM IV is at 31.80% with IV rank near 25.80%, 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.