ACIC Long Put Strategy
ACIC (American Coastal Insurance Corporation), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NASDAQ.
American Coastal Insurance Corporation operates as a property and casualty insurance holding company that sources, writes, and services residential personal and commercial property, and casualty insurance policies in the United States. The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners. It also provides commercial multi-peril property insurance for residential condominium associations and apartments, as well as loss or damage to buildings, inventory, and equipment caused by fire, wind, hail, water, theft, and vandalism. In addition, the company offers equipment breakdown, identity theft, cyber security, and flood policies. The company markets and distributes its products through a network of independent agencies. The company was formerly known as United Insurance Holdings Corp. and changed its name to American Coastal Insurance Corporation in August 2023.
ACIC (American Coastal Insurance Corporation) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $520.3M, a trailing P/E of 4.98, a beta of -0.47 versus the broader market, a 52-week range of 9.8-13.06, average daily share volume of 237K, a public-listing history dating back to 2007, approximately 65 full-time employees. These structural characteristics shape how ACIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.47 indicates ACIC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 4.98 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ACIC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on ACIC?
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 ACIC snapshot
As of May 15, 2026, spot at $10.92, ATM IV 26.00%, IV rank 2.51%, expected move 7.45%. The long put on ACIC 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 ACIC specifically: ACIC IV at 26.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a ACIC long put, with a market-implied 1-standard-deviation move of approximately 7.45% (roughly $0.81 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 ACIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACIC should anchor to the underlying notional of $10.92 per share and to the trader's directional view on ACIC stock.
ACIC long put setup
The ACIC 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 ACIC near $10.92, the first option leg uses a $10.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACIC 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 ACIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $10.92 | N/A |
ACIC 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.
ACIC long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on ACIC. 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 ACIC
Long puts on ACIC hedge an existing long ACIC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ACIC exposure being hedged.
ACIC thesis for this long put
The market-implied 1-standard-deviation range for ACIC extends from approximately $10.11 on the downside to $11.73 on the upside. A ACIC long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long ACIC position with one put per 100 shares held. Current ACIC IV rank near 2.51% 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 ACIC at 26.00%. As a Financial Services name, ACIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACIC-specific events.
ACIC 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. ACIC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACIC alongside the broader basket even when ACIC-specific fundamentals are unchanged. Long-premium structures like a long put on ACIC 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 ACIC chain quotes before placing a trade.
Frequently asked questions
- What is a long put on ACIC?
- A long put on ACIC is the long put strategy applied to ACIC (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 ACIC stock trading near $10.92, the strikes shown on this page are snapped to the nearest listed ACIC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACIC 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 ACIC long put priced from the end-of-day chain at a 30-day expiry (ATM IV 26.00%), 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 ACIC long put?
- The breakeven for the ACIC 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 ACIC market-implied 1-standard-deviation expected move is approximately 7.45%; 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 ACIC?
- Long puts on ACIC hedge an existing long ACIC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ACIC exposure being hedged.
- How does current ACIC implied volatility affect this long put?
- ACIC ATM IV is at 26.00% with IV rank near 2.51%, 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.