PTH Long Put Strategy
PTH (Invesco Dorsey Wright Healthcare Momentum ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Invesco Dorsey Wright Healthcare Momentum ETF (Fund) is based on the Dorsey Wright Healthcare Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security's performance in a given universe over time as compared to the performance of all other securities in that universe. The Fund and the Index are rebalanced and reconstituted quarterly.
PTH (Invesco Dorsey Wright Healthcare Momentum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $122.9M, a beta of 1.06 versus the broader market, a 52-week range of 35.78-54.48, average daily share volume of 9K, a public-listing history dating back to 2006. These structural characteristics shape how PTH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places PTH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PTH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on PTH?
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 PTH snapshot
As of May 15, 2026, spot at $51.16, ATM IV 26.30%, IV rank 12.33%, expected move 7.54%. The long put on PTH 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 PTH specifically: PTH IV at 26.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a PTH long put, with a market-implied 1-standard-deviation move of approximately 7.54% (roughly $3.86 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 PTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on PTH should anchor to the underlying notional of $51.16 per share and to the trader's directional view on PTH etf.
PTH long put setup
The PTH 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 PTH near $51.16, the first option leg uses a $51.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PTH 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 PTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $51.00 | $1.52 |
PTH long put risk and reward
- Net Premium / Debit
- -$152.00
- Max Profit (per contract)
- $4,947.00
- Max Loss (per contract)
- -$152.00
- Breakeven(s)
- $49.48
- Risk / Reward Ratio
- 32.546
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
PTH long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on PTH. 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% | +$4,947.00 |
| $11.32 | -77.9% | +$3,815.93 |
| $22.63 | -55.8% | +$2,684.87 |
| $33.94 | -33.7% | +$1,553.80 |
| $45.25 | -11.5% | +$422.74 |
| $56.56 | +10.6% | -$152.00 |
| $67.87 | +32.7% | -$152.00 |
| $79.18 | +54.8% | -$152.00 |
| $90.50 | +76.9% | -$152.00 |
| $101.81 | +99.0% | -$152.00 |
When traders use long put on PTH
Long puts on PTH hedge an existing long PTH etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PTH exposure being hedged.
PTH thesis for this long put
The market-implied 1-standard-deviation range for PTH extends from approximately $47.30 on the downside to $55.02 on the upside. A PTH long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PTH position with one put per 100 shares held. Current PTH IV rank near 12.33% 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 PTH at 26.30%. As a Financial Services name, PTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PTH-specific events.
PTH 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. PTH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PTH alongside the broader basket even when PTH-specific fundamentals are unchanged. Long-premium structures like a long put on PTH 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 PTH chain quotes before placing a trade.
Frequently asked questions
- What is a long put on PTH?
- A long put on PTH is the long put strategy applied to PTH (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 PTH etf trading near $51.16, the strikes shown on this page are snapped to the nearest listed PTH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PTH 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 PTH long put priced from the end-of-day chain at a 30-day expiry (ATM IV 26.30%), the computed maximum profit is $4,947.00 per contract and the computed maximum loss is -$152.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PTH long put?
- The breakeven for the PTH long put priced on this page is roughly $49.48 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 PTH market-implied 1-standard-deviation expected move is approximately 7.54%; 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 PTH?
- Long puts on PTH hedge an existing long PTH etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PTH exposure being hedged.
- How does current PTH implied volatility affect this long put?
- PTH ATM IV is at 26.30% with IV rank near 12.33%, 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.