MXI Long Put Strategy
MXI (iShares Global Materials ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
The iShares Global Materials ETF seeks to track the investment results of an index composed of global equities in the materials sector.
MXI (iShares Global Materials ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $250.3M, a beta of 0.98 versus the broader market, a 52-week range of 82.49-116.61, average daily share volume of 36K, a public-listing history dating back to 2006. These structural characteristics shape how MXI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places MXI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MXI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on MXI?
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 MXI snapshot
As of May 15, 2026, spot at $109.63, ATM IV 26.40%, IV rank 21.71%, expected move 7.57%. The long put on MXI 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 MXI specifically: MXI IV at 26.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a MXI long put, with a market-implied 1-standard-deviation move of approximately 7.57% (roughly $8.30 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 MXI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MXI should anchor to the underlying notional of $109.63 per share and to the trader's directional view on MXI etf.
MXI long put setup
The MXI 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 MXI near $109.63, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MXI 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 MXI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $110.00 | $4.00 |
MXI long put risk and reward
- Net Premium / Debit
- -$400.00
- Max Profit (per contract)
- $10,599.00
- Max Loss (per contract)
- -$400.00
- Breakeven(s)
- $106.00
- Risk / Reward Ratio
- 26.498
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
MXI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on MXI. 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% | +$10,599.00 |
| $24.25 | -77.9% | +$8,175.13 |
| $48.49 | -55.8% | +$5,751.26 |
| $72.73 | -33.7% | +$3,327.39 |
| $96.96 | -11.6% | +$903.52 |
| $121.20 | +10.6% | -$400.00 |
| $145.44 | +32.7% | -$400.00 |
| $169.68 | +54.8% | -$400.00 |
| $193.92 | +76.9% | -$400.00 |
| $218.16 | +99.0% | -$400.00 |
When traders use long put on MXI
Long puts on MXI hedge an existing long MXI etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying MXI exposure being hedged.
MXI thesis for this long put
The market-implied 1-standard-deviation range for MXI extends from approximately $101.33 on the downside to $117.93 on the upside. A MXI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long MXI position with one put per 100 shares held. Current MXI IV rank near 21.71% 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 MXI at 26.40%. As a Financial Services name, MXI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MXI-specific events.
MXI 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. MXI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MXI alongside the broader basket even when MXI-specific fundamentals are unchanged. Long-premium structures like a long put on MXI 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 MXI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on MXI?
- A long put on MXI is the long put strategy applied to MXI (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 MXI etf trading near $109.63, the strikes shown on this page are snapped to the nearest listed MXI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MXI 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 MXI long put priced from the end-of-day chain at a 30-day expiry (ATM IV 26.40%), the computed maximum profit is $10,599.00 per contract and the computed maximum loss is -$400.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MXI long put?
- The breakeven for the MXI long put priced on this page is roughly $106.00 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 MXI market-implied 1-standard-deviation expected move is approximately 7.57%; 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 MXI?
- Long puts on MXI hedge an existing long MXI etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying MXI exposure being hedged.
- How does current MXI implied volatility affect this long put?
- MXI ATM IV is at 26.40% with IV rank near 21.71%, 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.