ABX Long Put Strategy

ABX (Abacus Global Management, Inc.), in the Financial Services sector, (Insurance - Life industry), listed on NYSE.

Abacus Global Management, Inc., established in 2004 and based in Orlando, Florida, operates within the United States as both an alternative asset manager and a market maker. The firm, set to officially transition its name from Abacus Life, Inc. in February 2025, organizes its business across five principal divisions. Its Active Management segment focuses on the procurement, divestiture, and exchange of policies, overseeing their administration until death benefits are released. The Originations segment specializes in brokering life insurance policy settlements, connecting investors or purchasers with original policyholders who are selling their policies. Through its Asset Management operations, the company delivers comprehensive asset management services to investors engaged in alternative investment and equity portfolio funds, all governed by fund investment agreements. Additionally, the Portfolio Servicing division provides contractual policy administration support to its clients.

ABX (Abacus Global Management, Inc.) trades in the Financial Services sector, specifically Insurance - Life, with a market capitalization of approximately $818.2M, a trailing P/E of 29.22, a beta of 0.06 versus the broader market, a 52-week range of 5-12.44, average daily share volume of 600K, a public-listing history dating back to 2020, approximately 326 full-time employees. These structural characteristics shape how ABX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.06 indicates ABX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ABX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on ABX?

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.

ABX snapshot

As of August 14, 2026, spot at $9.26, ATM IV 24.90%, IV rank 2.83%, expected move 7.14%. The long put on ABX below is built from the 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 ABX specifically: ABX IV at 24.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a ABX long put, with a market-implied 1-standard-deviation move of approximately 7.14% (roughly $0.66 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 ABX expiries trade a higher absolute premium for lower per-day decay. Position sizing on ABX should anchor to the underlying notional of $9.26 per share and to the trader's directional view on ABX stock.

ABX long put setup

The ABX 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 ABX at $9.26 on that close, the first option leg uses a $9.26 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ABX 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 ABX shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Put$9.26N/A

ABX long put risk and reward

Net Premium / Debit
N/A
Max Profit (per contract)
Unbounded
Max Loss (per contract)
Unbounded
Breakeven(s)
None on modeled curve
Risk / Reward Ratio
N/A

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

ABX long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on ABX. 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.

When traders use long put on ABX

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

ABX thesis for this long put

The market-implied 1-standard-deviation range for ABX extends from approximately $8.60 on the downside to $9.92 on the upside. A ABX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long ABX position with one put per 100 shares held. Current ABX IV rank near 2.83% 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 ABX at 24.90%. As a Financial Services name, ABX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ABX-specific events.

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

Frequently asked questions

What is a long put on ABX?
A long put on ABX is the long put strategy applied to ABX (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 ABX stock at $9.26 on the most recent close, the strikes shown on this page are snapped to the nearest listed ABX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ABX 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 ABX long put priced from the end-of-day chain at a 30-day expiry (ATM IV 24.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ABX long put?
The breakeven for the ABX long put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 ABX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.14%; 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 ABX?
Long puts on ABX hedge an existing long ABX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ABX exposure being hedged.
How does current ABX implied volatility affect this long put?
ABX ATM IV is at 24.90% with IV rank near 2.83%, 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.

Related ABX analysis