LVHI Long Put Strategy
LVHI (Franklin International Low Volatility High Dividend Index ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Seeks to track the investment results of the underlying index, Franklin International Low Volatility High Dividend Hedged Index, which is composed of equity securities of developed markets outside the United States with relatively high yield and low price and earnings volatility.
LVHI (Franklin International Low Volatility High Dividend Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.89B, a beta of 0.42 versus the broader market, a 52-week range of 32.16-41.7, average daily share volume of 825K, a public-listing history dating back to 2016. These structural characteristics shape how LVHI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.42 indicates LVHI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. LVHI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on LVHI?
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 LVHI snapshot
As of May 15, 2026, spot at $41.00, ATM IV 40.80%, IV rank 18.95%, expected move 11.70%. The long put on LVHI 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 LVHI specifically: LVHI IV at 40.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a LVHI long put, with a market-implied 1-standard-deviation move of approximately 11.70% (roughly $4.80 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 LVHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on LVHI should anchor to the underlying notional of $41.00 per share and to the trader's directional view on LVHI etf.
LVHI long put setup
The LVHI 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 LVHI near $41.00, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LVHI 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 LVHI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $41.00 | N/A |
LVHI 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.
LVHI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on LVHI. 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 LVHI
Long puts on LVHI hedge an existing long LVHI etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LVHI exposure being hedged.
LVHI thesis for this long put
The market-implied 1-standard-deviation range for LVHI extends from approximately $36.20 on the downside to $45.80 on the upside. A LVHI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long LVHI position with one put per 100 shares held. Current LVHI IV rank near 18.95% 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 LVHI at 40.80%. As a Financial Services name, LVHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LVHI-specific events.
LVHI 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. LVHI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LVHI alongside the broader basket even when LVHI-specific fundamentals are unchanged. Long-premium structures like a long put on LVHI 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 LVHI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on LVHI?
- A long put on LVHI is the long put strategy applied to LVHI (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 LVHI etf trading near $41.00, the strikes shown on this page are snapped to the nearest listed LVHI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LVHI 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 LVHI long put priced from the end-of-day chain at a 30-day expiry (ATM IV 40.80%), 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 LVHI long put?
- The breakeven for the LVHI 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 LVHI market-implied 1-standard-deviation expected move is approximately 11.70%; 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 LVHI?
- Long puts on LVHI hedge an existing long LVHI etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LVHI exposure being hedged.
- How does current LVHI implied volatility affect this long put?
- LVHI ATM IV is at 40.80% with IV rank near 18.95%, 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.