AKBA Long Put Strategy
AKBA (Akebia Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Akebia Therapeutics, Inc., established in 2007 and headquartered in Cambridge, Massachusetts, is a biopharmaceutical company focused on discovering and commercializing therapies for patients suffering from kidney diseases. The firm's leading experimental drug, vadadustat, is an oral treatment currently in Phase III clinical trials. Its purpose is to address anemia resulting from chronic kidney disease (CKD) in adult patients, encompassing both those dependent on dialysis and those who are not. Akebia also markets Auryxia, a ferric citrate product used to manage serum phosphorus levels in adult CKD patients undergoing dialysis, and to treat iron deficiency anemia in adult CKD patients who are not on dialysis. The company has several key collaboration agreements: with Otsuka Pharmaceutical Co. Ltd. for vadadustat's development and commercialization across major regions including the United States, European Union, Russia, China, Australia, Canada, and the Middle East; with Mitsubishi Tanabe Pharma Corporation for vadadustat in Japan and other Asian territories; and a research and licensing deal with Janssen Pharmaceutica NV pertaining to hypoxia-inducible factor prolyl hydroxylase targeted compounds globally.
AKBA (Akebia Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $239.6M, a beta of 0.24 versus the broader market, a 52-week range of 0.823-3.375, average daily share volume of 4.5M, a public-listing history dating back to 2014, approximately 194 full-time employees. These structural characteristics shape how AKBA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.24 indicates AKBA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a long put on AKBA?
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.
AKBA snapshot
As of August 14, 2026, spot at $0.88, ATM IV 31.30%, IV rank 2.70%, expected move 8.97%. The long put on AKBA below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this long put structure on AKBA specifically: AKBA IV at 31.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a AKBA long put, with a market-implied 1-standard-deviation move of approximately 8.97% (roughly $0.08 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AKBA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AKBA should anchor to the underlying notional of $0.88 per share and to the trader's directional view on AKBA stock.
AKBA long put setup
The AKBA 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 AKBA at $0.88 on that close, the first option leg uses a $0.88 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AKBA chain at a 35-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 AKBA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $0.88 | N/A |
AKBA 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.
AKBA long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on AKBA. 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 AKBA
Long puts on AKBA hedge an existing long AKBA stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AKBA exposure being hedged.
AKBA thesis for this long put
The market-implied 1-standard-deviation range for AKBA extends from approximately $0.80 on the downside to $0.96 on the upside. A AKBA long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long AKBA position with one put per 100 shares held. Current AKBA IV rank near 2.70% 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 AKBA at 31.30%. As a Healthcare name, AKBA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AKBA-specific events.
AKBA 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. AKBA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AKBA alongside the broader basket even when AKBA-specific fundamentals are unchanged. Long-premium structures like a long put on AKBA 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 AKBA chain quotes before placing a trade.
Frequently asked questions
- What is a long put on AKBA?
- A long put on AKBA is the long put strategy applied to AKBA (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 AKBA stock at $0.88 on the most recent close, the strikes shown on this page are snapped to the nearest listed AKBA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AKBA 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 AKBA long put priced from the end-of-day chain at a 30-day expiry (ATM IV 31.30%), 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 AKBA long put?
- The breakeven for the AKBA long put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 AKBA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.97%; 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 AKBA?
- Long puts on AKBA hedge an existing long AKBA stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AKBA exposure being hedged.
- How does current AKBA implied volatility affect this long put?
- AKBA ATM IV is at 31.30% with IV rank near 2.70%, 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.