How are MSOS 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 MSOS long put priced from the end-of-day chain at a 30-day expiry (ATM IV 89.63%), the computed maximum profit is $469.00 per contract and the computed maximum loss is -$30.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MSOS long put?

The breakeven for the MSOS long put priced on this page is roughly $4.70 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 MSOS market-implied 1-standard-deviation expected move is approximately 25.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MSOS implied volatility affect this long put?

MSOS ATM IV is at 89.63% with IV rank near 35.91%, 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.

MSOS Long Put Strategy

MSOS (AdvisorShares Pure US Cannabis ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

MSOS is the groundbreaking actively managed ETF, listed in the U.S., providing focused exposure exclusively to American cannabis companies, including multi-state operators. The fund's portfolio strategically allocates capital across a wide array of U.S.-based cannabis-related businesses. Offering seamless access, MSOS trades on the NYSE Arca, enabling investors to gain exposure to numerous U.S. cannabis securities through a single, convenient trade. Directly investing in individual U.S. cannabis firms often necessitates sourcing them on smaller, foreign exchanges. The ETF benefits from a portfolio manager with profound capital markets experience and established expertise in navigating highly-regulated equity sectors, notably cannabis. All MSOS assets are securely held by BNY Mellon, one of the largest U.S. custodial banks.

MSOS (AdvisorShares Pure US Cannabis ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $609.1M, a beta of 0.82 versus the broader market, a 52-week range of 2.22-7.25, average daily share volume of 9.2M, a public-listing history dating back to 2020. These structural characteristics shape how MSOS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places MSOS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a long put on MSOS?

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 MSOS snapshot

As of June 30, 2026, spot at $4.95, ATM IV 89.63%, IV rank 35.91%, expected move 25.70%. The long put on MSOS 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 17-day expiry.

Why this long put structure on MSOS specifically: MSOS IV at 89.63% 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 25.70% (roughly $1.27 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MSOS expiries trade a higher absolute premium for lower per-day decay. Position sizing on MSOS should anchor to the underlying notional of $4.95 per share and to the trader's directional view on MSOS etf.

MSOS long put setup

The MSOS 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 MSOS near $4.95, the first option leg uses a $5.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MSOS chain at a 17-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 MSOS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$5.00	$0.30

MSOS long put risk and reward

Net Premium / Debit: -$30.00
Max Profit (per contract): $469.00
Max Loss (per contract): -$30.00
Breakeven(s): $4.70
Risk / Reward Ratio: 15.633

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

MSOS long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on MSOS. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.8%	+$469.00
$1.10	-77.7%	+$359.66
$2.20	-55.6%	+$250.33
$3.29	-33.5%	+$140.99
$4.38	-11.4%	+$31.65
$5.48	+10.6%	-$30.00
$6.57	+32.7%	-$30.00
$7.66	+54.8%	-$30.00
$8.76	+76.9%	-$30.00
$9.85	+99.0%	-$30.00

When traders use long put on MSOS

Long puts on MSOS hedge an existing long MSOS etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying MSOS exposure being hedged.

MSOS thesis for this long put

The market-implied 1-standard-deviation range for MSOS extends from approximately $3.68 on the downside to $6.22 on the upside. A MSOS long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long MSOS position with one put per 100 shares held. Current MSOS IV rank near 35.91% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on MSOS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, MSOS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MSOS-specific events.

MSOS 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. MSOS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MSOS alongside the broader basket even when MSOS-specific fundamentals are unchanged. Long-premium structures like a long put on MSOS 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 MSOS chain quotes before placing a trade.

Frequently asked questions

What is a long put on MSOS?: A long put on MSOS is the long put strategy applied to MSOS (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 MSOS etf trading near $4.95, the strikes shown on this page are snapped to the nearest listed MSOS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MSOS 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 MSOS long put priced from the end-of-day chain at a 30-day expiry (ATM IV 89.63%), the computed maximum profit is $469.00 per contract and the computed maximum loss is -$30.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MSOS long put?: The breakeven for the MSOS long put priced on this page is roughly $4.70 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 MSOS market-implied 1-standard-deviation expected move is approximately 25.70%; 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 MSOS?: Long puts on MSOS hedge an existing long MSOS etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying MSOS exposure being hedged.
How does current MSOS implied volatility affect this long put?: MSOS ATM IV is at 89.63% with IV rank near 35.91%, 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.