How are AMBA 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 AMBA long put priced from the end-of-day chain at a 30-day expiry (ATM IV 100.52%), the computed maximum profit is $7,184.00 per contract and the computed maximum loss is -$915.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AMBA long put?

The breakeven for the AMBA long put priced on this page is roughly $71.85 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 AMBA market-implied 1-standard-deviation expected move is approximately 28.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AMBA implied volatility affect this long put?

AMBA ATM IV is at 100.52% with IV rank near 98.15%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

AMBA Long Put Strategy

AMBA (Ambarella, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Ambarella, Inc. develops semiconductor solutions for video that enable high-definition (HD) and ultra HD compression, image processing, and deep neural network processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; and professional and home internet protocol security camera; robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.

AMBA (Ambarella, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $3.60B, a beta of 2.16 versus the broader market, a 52-week range of 48.3-96.69, average daily share volume of 866K, a public-listing history dating back to 2012, approximately 941 full-time employees. These structural characteristics shape how AMBA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.16 indicates AMBA has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a long put on AMBA?

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 AMBA snapshot

As of May 15, 2026, spot at $81.28, ATM IV 100.52%, IV rank 98.15%, expected move 28.82%. The long put on AMBA 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 28-day expiry.

Why this long put structure on AMBA specifically: AMBA IV at 100.52% is rich versus its 1-year range, which makes a premium-buying AMBA long put relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 28.82% (roughly $23.42 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 AMBA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMBA should anchor to the underlying notional of $81.28 per share and to the trader's directional view on AMBA stock.

AMBA long put setup

The AMBA 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 AMBA near $81.28, the first option leg uses a $81.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMBA 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 AMBA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$81.00	$9.15

AMBA long put risk and reward

Net Premium / Debit: -$915.00
Max Profit (per contract): $7,184.00
Max Loss (per contract): -$915.00
Breakeven(s): $71.85
Risk / Reward Ratio: 7.851

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

AMBA long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on AMBA. 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%	+$7,184.00
$17.98	-77.9%	+$5,386.96
$35.95	-55.8%	+$3,589.93
$53.92	-33.7%	+$1,792.89
$71.89	-11.6%	-$4.14
$89.86	+10.6%	-$915.00
$107.83	+32.7%	-$915.00
$125.80	+54.8%	-$915.00
$143.77	+76.9%	-$915.00
$161.74	+99.0%	-$915.00

When traders use long put on AMBA

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

AMBA thesis for this long put

The market-implied 1-standard-deviation range for AMBA extends from approximately $57.86 on the downside to $104.70 on the upside. A AMBA long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long AMBA position with one put per 100 shares held. Current AMBA IV rank near 98.15% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on AMBA at 100.52%. As a Technology name, AMBA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMBA-specific events.

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

Frequently asked questions

What is a long put on AMBA?: A long put on AMBA is the long put strategy applied to AMBA (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 AMBA stock trading near $81.28, the strikes shown on this page are snapped to the nearest listed AMBA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AMBA 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 AMBA long put priced from the end-of-day chain at a 30-day expiry (ATM IV 100.52%), the computed maximum profit is $7,184.00 per contract and the computed maximum loss is -$915.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AMBA long put?: The breakeven for the AMBA long put priced on this page is roughly $71.85 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 AMBA market-implied 1-standard-deviation expected move is approximately 28.82%; 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 AMBA?: Long puts on AMBA hedge an existing long AMBA stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AMBA exposure being hedged.
How does current AMBA implied volatility affect this long put?: AMBA ATM IV is at 100.52% with IV rank near 98.15%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.