PSIL Long Put Strategy
PSIL (AdvisorShares Psychedelics ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
This actively managed Exchange Traded Fund (ETF) endeavors to meet its investment goals by typically allocating a minimum of 80% of its total net assets (including any capital secured through borrowing for investment purposes) into the securities of specific companies. To be eligible for inclusion, these companies must either derive at least half of their net revenue from, or commit 50% or more of their assets to, psychedelic compounds, their derivatives, or other financial instruments exhibiting similar economic characteristics. The fund's primary holdings consist of publicly traded life sciences firms focused on psychedelic medical treatments, in addition to other businesses involved in the broader psychedelics sector. It is important to note that this fund maintains a concentrated, non-diversified portfolio.
PSIL (AdvisorShares Psychedelics ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $25.8M, a beta of 0.56 versus the broader market, a 52-week range of 15.36-25.725, average daily share volume of 44K, a public-listing history dating back to 2021. These structural characteristics shape how PSIL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.56 indicates PSIL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PSIL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on PSIL?
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.
PSIL snapshot
As of August 14, 2026, spot at $25.25, ATM IV 48.90%, IV rank 5.28%, expected move 14.02%. The long put on PSIL below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this long put structure on PSIL specifically: PSIL IV at 48.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a PSIL long put, with a market-implied 1-standard-deviation move of approximately 14.02% (roughly $3.54 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PSIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSIL should anchor to the underlying notional of $25.25 per share and to the trader's directional view on PSIL etf.
PSIL long put setup
The PSIL long put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PSIL at $25.25 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 PSIL chain at a 35-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 PSIL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $25.00 | $1.38 |
PSIL long put risk and reward
- Net Premium / Debit
- -$137.50
- Max Profit (per contract)
- $2,361.50
- Max Loss (per contract)
- -$137.50
- Breakeven(s)
- $23.63
- Risk / Reward Ratio
- 17.175
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
PSIL long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on PSIL. 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% | +$2,361.50 |
| $5.59 | -77.9% | +$1,803.32 |
| $11.17 | -55.7% | +$1,245.14 |
| $16.76 | -33.6% | +$686.96 |
| $22.34 | -11.5% | +$128.78 |
| $27.92 | +10.6% | -$137.50 |
| $33.50 | +32.7% | -$137.50 |
| $39.08 | +54.8% | -$137.50 |
| $44.66 | +76.9% | -$137.50 |
| $50.25 | +99.0% | -$137.50 |
When traders use long put on PSIL
Long puts on PSIL hedge an existing long PSIL etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PSIL exposure being hedged.
PSIL thesis for this long put
The market-implied 1-standard-deviation range for PSIL extends from approximately $21.71 on the downside to $28.79 on the upside. A PSIL long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PSIL position with one put per 100 shares held. Current PSIL IV rank near 5.28% 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 PSIL at 48.90%. As a Financial Services name, PSIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSIL-specific events.
PSIL 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. PSIL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PSIL alongside the broader basket even when PSIL-specific fundamentals are unchanged. Long-premium structures like a long put on PSIL 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 PSIL chain quotes before placing a trade.
Frequently asked questions
- What is a long put on PSIL?
- A long put on PSIL is the long put strategy applied to PSIL (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 PSIL etf at $25.25 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PSIL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PSIL 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 PSIL long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.90%), the computed maximum profit is $2,361.50 per contract and the computed maximum loss is -$137.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PSIL long put?
- The breakeven for the PSIL long put priced on this page is roughly $23.63 at expiration, derived from the August 14, 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 PSIL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.02%; 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 PSIL?
- Long puts on PSIL hedge an existing long PSIL etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PSIL exposure being hedged.
- How does current PSIL implied volatility affect this long put?
- PSIL ATM IV is at 48.90% with IV rank near 5.28%, 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.