QABA Long Put Strategy
QABA (First Trust NASDAQ ABA Community Bank Index Fund), in the Financial Services sector, (Asset Management - Bonds industry), listed on NASDAQ.
Operating as an exchange-traded fund, the First Trust NASDAQ ABA Community Bank Index Fund aims to replicate the financial performance, encompassing both price appreciation and income generation, of the Nasdaq OMX ABA Community Bank Index. This objective is pursued prior to the deduction of the fund's various operational costs and fees.
QABA (First Trust NASDAQ ABA Community Bank Index Fund) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $94.4M, a beta of 0.98 versus the broader market, a 52-week range of 51.9-70.66, average daily share volume of 6K, a public-listing history dating back to 2009. These structural characteristics shape how QABA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places QABA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. QABA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on QABA?
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.
QABA snapshot
As of August 14, 2026, spot at $70.28, ATM IV 20.30%, IV rank 29.01%, expected move 5.82%. The long put on QABA 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 63-day expiry.
Why this long put structure on QABA specifically: QABA IV at 20.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a QABA long put, with a market-implied 1-standard-deviation move of approximately 5.82% (roughly $4.09 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated QABA expiries trade a higher absolute premium for lower per-day decay. Position sizing on QABA should anchor to the underlying notional of $70.28 per share and to the trader's directional view on QABA etf.
QABA long put setup
The QABA 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 QABA at $70.28 on that close, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QABA chain at a 63-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 QABA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $70.00 | $2.10 |
QABA long put risk and reward
- Net Premium / Debit
- -$210.00
- Max Profit (per contract)
- $6,789.00
- Max Loss (per contract)
- -$210.00
- Breakeven(s)
- $67.90
- Risk / Reward Ratio
- 32.329
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
QABA long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on QABA. 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% | +$6,789.00 |
| $15.55 | -77.9% | +$5,235.18 |
| $31.09 | -55.8% | +$3,681.36 |
| $46.62 | -33.7% | +$2,127.54 |
| $62.16 | -11.5% | +$573.72 |
| $77.70 | +10.6% | -$210.00 |
| $93.24 | +32.7% | -$210.00 |
| $108.78 | +54.8% | -$210.00 |
| $124.32 | +76.9% | -$210.00 |
| $139.85 | +99.0% | -$210.00 |
When traders use long put on QABA
Long puts on QABA hedge an existing long QABA etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying QABA exposure being hedged.
QABA thesis for this long put
The market-implied 1-standard-deviation range for QABA extends from approximately $66.19 on the downside to $74.37 on the upside. A QABA long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long QABA position with one put per 100 shares held. Current QABA IV rank near 29.01% 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 QABA at 20.30%. As a Financial Services name, QABA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QABA-specific events.
QABA 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. QABA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QABA alongside the broader basket even when QABA-specific fundamentals are unchanged. Long-premium structures like a long put on QABA 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 QABA chain quotes before placing a trade.
Frequently asked questions
- What is a long put on QABA?
- A long put on QABA is the long put strategy applied to QABA (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 QABA etf at $70.28 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed QABA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are QABA 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 QABA long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.30%), the computed maximum profit is $6,789.00 per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QABA long put?
- The breakeven for the QABA long put priced on this page is roughly $67.90 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 QABA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.82%; 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 QABA?
- Long puts on QABA hedge an existing long QABA etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying QABA exposure being hedged.
- How does current QABA implied volatility affect this long put?
- QABA ATM IV is at 20.30% with IV rank near 29.01%, 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.