ACB Long Put Strategy

ACB (Aurora Cannabis Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

Aurora Cannabis Inc. produces, distributes, and sells cannabis and cannabis derivative products in Canada and internationally. It also engages in facility engineering and design, cannabis breeding, research, production, derivatives, product development, wholesale, and retail distribution activities. The company produces various strains of dried cannabis, cannabis oil and capsules, and topical kits for medical patients. It also sells vaporizers; consumable vaporizer accessories; and herb mills for using CanniMed herbal cannabis products, as well as grinders and vaporizer lockable containers. In addition, the company engages in the development of medical cannabis products at various stages of development, including oral, topical, edible, and inhalable products; and operation of CanvasRX, a network of cannabis counseling and outreach centers. Further, it provides patient counselling services; design and construction services; and cannabis analytical product testing services.

ACB (Aurora Cannabis Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $189.4M, a beta of 1.33 versus the broader market, a 52-week range of 3.07-6.665, average daily share volume of 947K, a public-listing history dating back to 2014, approximately 1K full-time employees. These structural characteristics shape how ACB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.33 indicates ACB 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 ACB?

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 ACB snapshot

As of May 15, 2026, spot at $3.29, ATM IV 79.20%, IV rank 18.17%, expected move 22.71%. The long put on ACB 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 ACB specifically: ACB IV at 79.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ACB long put, with a market-implied 1-standard-deviation move of approximately 22.71% (roughly $0.75 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 ACB expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACB should anchor to the underlying notional of $3.29 per share and to the trader's directional view on ACB stock.

ACB long put setup

The ACB 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 ACB near $3.29, the first option leg uses a $3.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACB 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 ACB shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Put$3.29N/A

ACB 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.

ACB long put payoff curve

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

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

ACB thesis for this long put

The market-implied 1-standard-deviation range for ACB extends from approximately $2.54 on the downside to $4.04 on the upside. A ACB long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long ACB position with one put per 100 shares held. Current ACB IV rank near 18.17% 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 ACB at 79.20%. As a Healthcare name, ACB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACB-specific events.

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

Frequently asked questions

What is a long put on ACB?
A long put on ACB is the long put strategy applied to ACB (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 ACB stock trading near $3.29, the strikes shown on this page are snapped to the nearest listed ACB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ACB 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 ACB long put priced from the end-of-day chain at a 30-day expiry (ATM IV 79.20%), 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 ACB long put?
The breakeven for the ACB long put priced on this page is no defined breakeven on the modeled curve 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 ACB market-implied 1-standard-deviation expected move is approximately 22.71%; 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 ACB?
Long puts on ACB hedge an existing long ACB stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ACB exposure being hedged.
How does current ACB implied volatility affect this long put?
ACB ATM IV is at 79.20% with IV rank near 18.17%, 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.

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