AIT Long Put Strategy
AIT (Applied Industrial Technologies, Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NYSE.
Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates through two segments, Service Center Based Distribution, and Fluid Power & Flow Control. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides equipment repair and technical support services. It distributes industrial products through a network of service centers.
AIT (Applied Industrial Technologies, Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $11.49B, a trailing P/E of 28.89, a beta of 0.86 versus the broader market, a 52-week range of 218.48-317.1, average daily share volume of 295K, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how AIT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places AIT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on AIT?
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 AIT snapshot
As of May 15, 2026, spot at $308.78, ATM IV 28.00%, IV rank 28.73%, expected move 8.03%. The long put on AIT 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 AIT specifically: AIT IV at 28.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a AIT long put, with a market-implied 1-standard-deviation move of approximately 8.03% (roughly $24.79 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 AIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIT should anchor to the underlying notional of $308.78 per share and to the trader's directional view on AIT stock.
AIT long put setup
The AIT 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 AIT near $308.78, the first option leg uses a $310.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIT 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 AIT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $310.00 | $11.35 |
AIT long put risk and reward
- Net Premium / Debit
- -$1,135.00
- Max Profit (per contract)
- $29,864.00
- Max Loss (per contract)
- -$1,135.00
- Breakeven(s)
- $298.65
- Risk / Reward Ratio
- 26.312
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
AIT long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on AIT. 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% | +$29,864.00 |
| $68.28 | -77.9% | +$23,036.81 |
| $136.55 | -55.8% | +$16,209.63 |
| $204.83 | -33.7% | +$9,382.44 |
| $273.10 | -11.6% | +$2,555.26 |
| $341.37 | +10.6% | -$1,135.00 |
| $409.64 | +32.7% | -$1,135.00 |
| $477.91 | +54.8% | -$1,135.00 |
| $546.18 | +76.9% | -$1,135.00 |
| $614.46 | +99.0% | -$1,135.00 |
When traders use long put on AIT
Long puts on AIT hedge an existing long AIT stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AIT exposure being hedged.
AIT thesis for this long put
The market-implied 1-standard-deviation range for AIT extends from approximately $283.99 on the downside to $333.57 on the upside. A AIT long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long AIT position with one put per 100 shares held. Current AIT IV rank near 28.73% 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 AIT at 28.00%. As a Industrials name, AIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIT-specific events.
AIT 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. AIT positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIT alongside the broader basket even when AIT-specific fundamentals are unchanged. Long-premium structures like a long put on AIT 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 AIT chain quotes before placing a trade.
Frequently asked questions
- What is a long put on AIT?
- A long put on AIT is the long put strategy applied to AIT (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 AIT stock trading near $308.78, the strikes shown on this page are snapped to the nearest listed AIT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIT 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 AIT long put priced from the end-of-day chain at a 30-day expiry (ATM IV 28.00%), the computed maximum profit is $29,864.00 per contract and the computed maximum loss is -$1,135.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AIT long put?
- The breakeven for the AIT long put priced on this page is roughly $298.65 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 AIT market-implied 1-standard-deviation expected move is approximately 8.03%; 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 AIT?
- Long puts on AIT hedge an existing long AIT stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AIT exposure being hedged.
- How does current AIT implied volatility affect this long put?
- AIT ATM IV is at 28.00% with IV rank near 28.73%, 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.