ACRE Long Put Strategy

ACRE (Ares Commercial Real Estate Corporation), in the Real Estate sector, (REIT - Mortgage industry), listed on NYSE.

Ares Commercial Real Estate Corporation (ACRE) functions as a specialized financial institution, primarily engaged in developing and investing in a diverse portfolio of commercial real estate (CRE) debt and associated investments throughout the United States. The company offers a broad spectrum of funding options designed for the owners, operators, and sponsors of commercial properties. ACRE's investment activities encompass originating senior mortgage loans, various subordinate debt products, hybrid mezzanine financing, preferred equity stakes in real estate, and other CRE-related assets, including commercial mortgage-backed securities (CMBS). For federal tax purposes in the U.S., ACRE has opted for and qualifies as a Real Estate Investment Trust (REIT) in accordance with the Internal Revenue Code of 1986. The firm's operations are managed by Ares Commercial Real Estate Management LLC. ACRE was established in 2011 and its main office is situated in New York, New York.

ACRE (Ares Commercial Real Estate Corporation) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $250.2M, a beta of 1.20 versus the broader market, a 52-week range of 4.05-5.89, average daily share volume of 414K, a public-listing history dating back to 2012, approximately 1K full-time employees. These structural characteristics shape how ACRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.20 places ACRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ACRE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on ACRE?

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 ACRE snapshot

As of June 30, 2026, spot at $4.54, ATM IV 38.80%, IV rank 32.89%, expected move 11.12%. The long put on ACRE 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 17-day expiry.

Why this long put structure on ACRE specifically: ACRE IV at 38.80% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 11.12% (roughly $0.51 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 ACRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACRE should anchor to the underlying notional of $4.54 per share and to the trader's directional view on ACRE stock.

ACRE long put setup

The ACRE 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 ACRE near $4.54, the first option leg uses a $4.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACRE 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 ACRE shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Put$4.54N/A

ACRE 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.

ACRE long put payoff curve

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

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

ACRE thesis for this long put

The market-implied 1-standard-deviation range for ACRE extends from approximately $4.03 on the downside to $5.05 on the upside. A ACRE long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long ACRE position with one put per 100 shares held. Current ACRE IV rank near 32.89% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on ACRE should anchor more to the directional view and the expected-move geometry. As a Real Estate name, ACRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACRE-specific events.

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

Frequently asked questions

What is a long put on ACRE?
A long put on ACRE is the long put strategy applied to ACRE (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 ACRE stock trading near $4.54, the strikes shown on this page are snapped to the nearest listed ACRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ACRE 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 ACRE long put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.80%), 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 ACRE long put?
The breakeven for the ACRE 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 ACRE market-implied 1-standard-deviation expected move is approximately 11.12%; 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 ACRE?
Long puts on ACRE hedge an existing long ACRE stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ACRE exposure being hedged.
How does current ACRE implied volatility affect this long put?
ACRE ATM IV is at 38.80% with IV rank near 32.89%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

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