AAOX Long Put Strategy
AAOX (Tradr 2X Long AAOI Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
AAOX uses swap agreements and listed call options to make bullish bets on the share price of Applied Optoelectronics, Inc. (NASDAQ: AAOI). The fund may also invest directly in AAOI. Applied Optoelectronics engages in the design and manufacture of optical communications products. Its products include optical devices and equipment for applications in fiber-to-the-home, cable television, point to point communications, and wireless. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in AAOI price through daily rebalancing. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility and compounding effects.
AAOX (Tradr 2X Long AAOI Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $232.9M, a beta of 21.85 versus the broader market, a 52-week range of 6.94-103, average daily share volume of 7.7M, a public-listing history dating back to 2026. These structural characteristics shape how AAOX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 21.85 indicates AAOX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a long put on AAOX?
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.
AAOX snapshot
As of September 29, 2026, spot at $9.43, ATM IV 168.60%, expected move 48.34%. The long put on AAOX below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this long put structure on AAOX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AAOX is inferred from ATM IV at 168.60% alone, with a market-implied 1-standard-deviation move of approximately 48.34% (roughly $4.56 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AAOX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AAOX should anchor to the underlying notional of $9.43 per share and to the trader's directional view on AAOX stock.
AAOX long put setup
The AAOX long put below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AAOX at $9.43 on that close, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AAOX chain at a 17-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 AAOX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $9.00 | $1.08 |
AAOX long put risk and reward
- Net Premium / Debit
- -$107.50
- Max Profit (per contract)
- $791.50
- Max Loss (per contract)
- -$107.50
- Breakeven(s)
- $7.93
- Risk / Reward Ratio
- 7.363
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
AAOX long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on AAOX. 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 | -99.9% | +$791.50 |
| $2.09 | -77.8% | +$583.11 |
| $4.18 | -55.7% | +$374.72 |
| $6.26 | -33.6% | +$166.32 |
| $8.35 | -11.5% | -$42.07 |
| $10.43 | +10.6% | -$107.50 |
| $12.51 | +32.7% | -$107.50 |
| $14.60 | +54.8% | -$107.50 |
| $16.68 | +76.9% | -$107.50 |
| $18.77 | +99.0% | -$107.50 |
When traders use long put on AAOX
Long puts on AAOX hedge an existing long AAOX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AAOX exposure being hedged.
AAOX thesis for this long put
The market-implied 1-standard-deviation range for AAOX extends from approximately $4.87 on the downside to $13.99 on the upside. A AAOX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long AAOX position with one put per 100 shares held. As a Financial Services name, AAOX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AAOX-specific events.
AAOX 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. AAOX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AAOX alongside the broader basket even when AAOX-specific fundamentals are unchanged. Long-premium structures like a long put on AAOX 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 AAOX chain quotes before placing a trade.
Frequently asked questions
- What is a long put on AAOX?
- A long put on AAOX is the long put strategy applied to AAOX (stock). 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 AAOX stock at $9.43 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed AAOX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AAOX 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 AAOX long put priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 168.60%), the computed maximum profit is $791.50 per contract and the computed maximum loss is -$107.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AAOX long put?
- The breakeven for the AAOX long put priced on this page is roughly $7.93 at expiration, derived from the September 29, 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 AAOX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 48.34%; 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 AAOX?
- Long puts on AAOX hedge an existing long AAOX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AAOX exposure being hedged.
- How does current AAOX implied volatility affect this long put?
- Current AAOX ATM IV is 168.60%; IV rank context is unavailable in the current snapshot.