ADI Long Put Strategy
ADI (Analog Devices, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Analog Devices, Inc. (ADI) is a technology leader specializing in the conception, production, validation, and global marketing of integrated circuits (ICs), software solutions, and advanced subsystems. Their offerings leverage sophisticated analog, mixed-signal, and digital signal processing technologies. The company's comprehensive product lineup features data converters, which are critical for transforming real-world analog signals into digital data and subsequently converting digital data back into analog signals. They also provide power management and reference devices, essential for power conversion, driver supervision, system sequencing, and energy optimization in industries such as automotive, telecommunications, industrial applications, and premium consumer markets. These power ICs are supported by integrated performance, integration, and software design simulation tools for precise power supply development. ADI's portfolio further includes high-performance amplifiers, designed for conditioning analog signals, as well as radio frequency (RF) and microwave ICs that underpin cellular infrastructure.
ADI (Analog Devices, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $187.25B, a trailing P/E of 56.57, a beta of 1.21 versus the broader market, a 52-week range of 223.47-445.91, average daily share volume of 4.3M, a public-listing history dating back to 1980, approximately 25K full-time employees. These structural characteristics shape how ADI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.21 places ADI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 56.57 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. ADI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on ADI?
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.
ADI snapshot
As of August 14, 2026, spot at $386.75, ATM IV 45.54%, IV rank 55.64%, expected move 13.05%. The long put on ADI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this long put structure on ADI specifically: ADI IV at 45.54% 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 13.05% (roughly $50.49 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ADI expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADI should anchor to the underlying notional of $386.75 per share and to the trader's directional view on ADI stock.
ADI long put setup
The ADI long put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ADI at $386.75 on that close, the first option leg uses a $385.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADI chain at a 28-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 ADI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $385.00 | $19.25 |
ADI long put risk and reward
- Net Premium / Debit
- -$1,925.00
- Max Profit (per contract)
- $36,574.00
- Max Loss (per contract)
- -$1,925.00
- Breakeven(s)
- $365.75
- Risk / Reward Ratio
- 18.999
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
ADI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on ADI. 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 | -100.0% | +$36,574.00 |
| $85.52 | -77.9% | +$28,022.85 |
| $171.03 | -55.8% | +$19,471.71 |
| $256.54 | -33.7% | +$10,920.56 |
| $342.06 | -11.6% | +$2,369.42 |
| $427.57 | +10.6% | -$1,925.00 |
| $513.08 | +32.7% | -$1,925.00 |
| $598.59 | +54.8% | -$1,925.00 |
| $684.10 | +76.9% | -$1,925.00 |
| $769.61 | +99.0% | -$1,925.00 |
When traders use long put on ADI
Long puts on ADI hedge an existing long ADI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ADI exposure being hedged.
ADI thesis for this long put
The market-implied 1-standard-deviation range for ADI extends from approximately $336.26 on the downside to $437.24 on the upside. A ADI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long ADI position with one put per 100 shares held. Current ADI IV rank near 55.64% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on ADI should anchor more to the directional view and the expected-move geometry. As a Technology name, ADI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADI-specific events.
ADI 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. ADI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADI alongside the broader basket even when ADI-specific fundamentals are unchanged. Long-premium structures like a long put on ADI 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 ADI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on ADI?
- A long put on ADI is the long put strategy applied to ADI (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 ADI stock at $386.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ADI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ADI 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 ADI long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 45.54%), the computed maximum profit is $36,574.00 per contract and the computed maximum loss is -$1,925.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ADI long put?
- The breakeven for the ADI long put priced on this page is roughly $365.75 at expiration, derived from the August 14, 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 ADI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.05%; 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 ADI?
- Long puts on ADI hedge an existing long ADI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ADI exposure being hedged.
- How does current ADI implied volatility affect this long put?
- ADI ATM IV is at 45.54% with IV rank near 55.64%, 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.