How are UNG 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 UNG long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.60%), the computed maximum profit is $958.50 per contract and the computed maximum loss is -$40.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UNG long put?

The breakeven for the UNG long put priced on this page is roughly $9.60 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 UNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UNG implied volatility affect this long put?

UNG ATM IV is at 33.60% with IV rank near 0.00%, 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.

UNG Long Put Strategy

UNG (United States Natural Gas Fund LP), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The fund primarily directs its investments into natural gas futures contracts. These financial instruments are actively traded across various platforms, including the New York Mercantile Exchange (NYMEX), ICE Futures Europe, ICE Futures U.S., and other domestic or international exchanges. The standard benchmark for the fund is the near-month natural gas futures contract listed on the NYMEX, except when that specific contract is less than two weeks away from its expiration date.

UNG (United States Natural Gas Fund LP) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $426.8M, a trailing P/E of 5.97, a beta of 1.70 versus the broader market, a 52-week range of 9.55-17.03, average daily share volume of 8.1M, a public-listing history dating back to 2007. These structural characteristics shape how UNG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.70 indicates UNG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 5.97 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a long put on UNG?

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.

UNG snapshot

As of August 14, 2026, spot at $9.93, ATM IV 33.60%, IV rank 0.00%, expected move 9.63%. The long put on UNG 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 28-day expiry.

Why this long put structure on UNG specifically: UNG IV at 33.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a UNG long put, with a market-implied 1-standard-deviation move of approximately 9.63% (roughly $0.96 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNG should anchor to the underlying notional of $9.93 per share and to the trader's directional view on UNG etf.

UNG long put setup

The UNG 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 UNG at $9.93 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNG chain at a 28-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 UNG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$10.00	$0.41

UNG long put risk and reward

Net Premium / Debit: -$40.50
Max Profit (per contract): $958.50
Max Loss (per contract): -$40.50
Breakeven(s): $9.60
Risk / Reward Ratio: 23.667

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

UNG long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on UNG. 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	-99.9%	+$958.50
$2.20	-77.8%	+$739.05
$4.40	-55.7%	+$519.61
$6.59	-33.6%	+$300.16
$8.79	-11.5%	+$80.71
$10.98	+10.6%	-$40.50
$13.18	+32.7%	-$40.50
$15.37	+54.8%	-$40.50
$17.57	+76.9%	-$40.50
$19.76	+99.0%	-$40.50

When traders use long put on UNG

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

UNG thesis for this long put

The market-implied 1-standard-deviation range for UNG extends from approximately $8.97 on the downside to $10.89 on the upside. A UNG long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long UNG position with one put per 100 shares held. Current UNG IV rank near 0.00% 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 UNG at 33.60%. As a Financial Services name, UNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNG-specific events.

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

Frequently asked questions

What is a long put on UNG?: A long put on UNG is the long put strategy applied to UNG (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 UNG etf at $9.93 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UNG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are UNG 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 UNG long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.60%), the computed maximum profit is $958.50 per contract and the computed maximum loss is -$40.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UNG long put?: The breakeven for the UNG long put priced on this page is roughly $9.60 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 UNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.63%; 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 UNG?: Long puts on UNG hedge an existing long UNG etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying UNG exposure being hedged.
How does current UNG implied volatility affect this long put?: UNG ATM IV is at 33.60% with IV rank near 0.00%, 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.