JEDI Long Put Strategy
JEDI (Drone and Modern Warfare ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Drone and Modern Warfare ETF (JEDI) is designed to mirror the investment performance of the BITA Drone & Modern Warfare Select Index, prior to factoring in fees and expenses. This fund offers investors targeted access to companies at the forefront of modern defense. Its holdings primarily consist of firms engaged in areas such as military drones, artificial intelligence (AI) for warfare, military information technology, various unmanned systems, electronic and communication warfare, intelligence, surveillance, and reconnaissance (ISR), space and missile systems, military cybersecurity, and advanced robotics. Under normal market conditions, the fund allocates at least 80% of its net assets to companies within these specialized defense sectors.
JEDI (Drone and Modern Warfare ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $148.1M, a beta of 2.71 versus the broader market, a 52-week range of 21.91-42.99, average daily share volume of 238K, a public-listing history dating back to 2025. These structural characteristics shape how JEDI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.71 indicates JEDI 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 JEDI?
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.
JEDI snapshot
As of September 29, 2026, spot at $25.30, ATM IV 50.80%, expected move 14.56%. The long put on JEDI 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 52-day expiry.
Why this long put structure on JEDI specifically: IV rank is unavailable in the current snapshot, so regime-based timing for JEDI is inferred from ATM IV at 50.80% alone, with a market-implied 1-standard-deviation move of approximately 14.56% (roughly $3.68 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated JEDI expiries trade a higher absolute premium for lower per-day decay. Position sizing on JEDI should anchor to the underlying notional of $25.30 per share and to the trader's directional view on JEDI etf.
JEDI long put setup
The JEDI 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 JEDI at $25.30 on that close, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JEDI chain at a 52-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 JEDI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $25.00 | $1.75 |
JEDI long put risk and reward
- Net Premium / Debit
- -$175.00
- Max Profit (per contract)
- $2,324.00
- Max Loss (per contract)
- -$175.00
- Breakeven(s)
- $23.25
- Risk / Reward Ratio
- 13.280
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
JEDI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on JEDI. 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% | +$2,324.00 |
| $5.60 | -77.9% | +$1,764.71 |
| $11.20 | -55.7% | +$1,205.43 |
| $16.79 | -33.6% | +$646.14 |
| $22.38 | -11.5% | +$86.85 |
| $27.97 | +10.6% | -$175.00 |
| $33.57 | +32.7% | -$175.00 |
| $39.16 | +54.8% | -$175.00 |
| $44.75 | +76.9% | -$175.00 |
| $50.35 | +99.0% | -$175.00 |
When traders use long put on JEDI
Long puts on JEDI hedge an existing long JEDI etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying JEDI exposure being hedged.
JEDI thesis for this long put
The market-implied 1-standard-deviation range for JEDI extends from approximately $21.62 on the downside to $28.98 on the upside. A JEDI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long JEDI position with one put per 100 shares held. As a Financial Services name, JEDI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JEDI-specific events.
JEDI 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. JEDI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move JEDI alongside the broader basket even when JEDI-specific fundamentals are unchanged. Long-premium structures like a long put on JEDI 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 JEDI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on JEDI?
- A long put on JEDI is the long put strategy applied to JEDI (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 JEDI etf at $25.30 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed JEDI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are JEDI 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 JEDI long put priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 50.80%), the computed maximum profit is $2,324.00 per contract and the computed maximum loss is -$175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a JEDI long put?
- The breakeven for the JEDI long put priced on this page is roughly $23.25 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 JEDI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.56%; 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 JEDI?
- Long puts on JEDI hedge an existing long JEDI etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying JEDI exposure being hedged.
- How does current JEDI implied volatility affect this long put?
- Current JEDI ATM IV is 50.80%; IV rank context is unavailable in the current snapshot.