FXI Long Put Strategy
FXI (iShares China Large-Cap ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares China Large-Cap ETF seeks to track the investment results of an index composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange.
FXI (iShares China Large-Cap ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $6.29B, a beta of 0.55 versus the broader market, a 52-week range of 34.77-42, average daily share volume of 30.5M, a public-listing history dating back to 2004. These structural characteristics shape how FXI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.55 indicates FXI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FXI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on FXI?
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 FXI snapshot
As of May 15, 2026, spot at $36.25, ATM IV 23.10%, IV rank 38.84%, expected move 6.62%. The long put on FXI 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 28-day expiry.
Why this long put structure on FXI specifically: FXI IV at 23.10% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 6.62% (roughly $2.40 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FXI expiries trade a higher absolute premium for lower per-day decay. Position sizing on FXI should anchor to the underlying notional of $36.25 per share and to the trader's directional view on FXI etf.
FXI long put setup
The FXI 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 FXI near $36.25, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FXI chain at a 28-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 FXI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $36.00 | $0.72 |
FXI long put risk and reward
- Net Premium / Debit
- -$71.50
- Max Profit (per contract)
- $3,527.50
- Max Loss (per contract)
- -$71.50
- Breakeven(s)
- $35.29
- Risk / Reward Ratio
- 49.336
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
FXI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on FXI. 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% | +$3,527.50 |
| $8.02 | -77.9% | +$2,726.10 |
| $16.04 | -55.8% | +$1,924.71 |
| $24.05 | -33.6% | +$1,123.31 |
| $32.07 | -11.5% | +$321.91 |
| $40.08 | +10.6% | -$71.50 |
| $48.09 | +32.7% | -$71.50 |
| $56.11 | +54.8% | -$71.50 |
| $64.12 | +76.9% | -$71.50 |
| $72.14 | +99.0% | -$71.50 |
When traders use long put on FXI
Long puts on FXI hedge an existing long FXI etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying FXI exposure being hedged.
FXI thesis for this long put
The market-implied 1-standard-deviation range for FXI extends from approximately $33.85 on the downside to $38.65 on the upside. A FXI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long FXI position with one put per 100 shares held. Current FXI IV rank near 38.84% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on FXI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FXI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FXI-specific events.
FXI 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. FXI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FXI alongside the broader basket even when FXI-specific fundamentals are unchanged. Long-premium structures like a long put on FXI 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 FXI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on FXI?
- A long put on FXI is the long put strategy applied to FXI (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 FXI etf trading near $36.25, the strikes shown on this page are snapped to the nearest listed FXI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FXI 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 FXI long put priced from the end-of-day chain at a 30-day expiry (ATM IV 23.10%), the computed maximum profit is $3,527.50 per contract and the computed maximum loss is -$71.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FXI long put?
- The breakeven for the FXI long put priced on this page is roughly $35.29 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 FXI market-implied 1-standard-deviation expected move is approximately 6.62%; 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 FXI?
- Long puts on FXI hedge an existing long FXI etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying FXI exposure being hedged.
- How does current FXI implied volatility affect this long put?
- FXI ATM IV is at 23.10% with IV rank near 38.84%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.