ARWR Long Put Strategy
ARWR (Arrowhead Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Arrowhead Pharmaceuticals, Inc., founded in 1989 and based in Pasadena, California, is a biopharmaceutical company dedicated to discovering and advancing innovative treatments for complex and challenging-to-treat diseases within the United States. The company's extensive therapeutic pipeline primarily leverages RNA interference (RNAi) technology. Among its advanced clinical programs are: ARO-AAT, a Phase II therapeutic targeting liver diseases associated with alpha-1 antitrypsin deficiency; ARO-APOC3, which is undergoing both Phase 2b and Phase 3 clinical evaluations for hypertriglyceridemia; ARO-ANG3, currently in Phase 2b development to reduce the production of angiopoietin-like protein 3; and ARO-HIF2, a Phase 1b candidate designed to treat clear cell renal cell carcinoma. Arrowhead also has several compounds in earlier clinical development, including ARO-HSD in Phase 1/2a for other liver diseases, ARO-ENaC in Phase 1/2a, aimed at decreasing the epithelial sodium channel alpha subunit in lung airways, and ARO-C3, also in Phase 1/2a, for complement-mediated diseases. Further expanding its diverse portfolio, the company is actively developing ARO-Lung2 for chronic obstructive pulmonary disorder (COPD), ARO-DUX4 for facioscapulohumeral muscular dystrophy, ARO-XDH for uncontrolled gout, and ARO-COV for COVID-19 and other pulmonary-borne pathogens. Beyond its core internal programs, Arrowhead is involved in the progression of JNJ-3989, a subcutaneously administered RNAi therapeutic for chronic hepatitis B virus infection; Olpasiran, intended to reduce apolipoprotein A production; and ARO-AMG1, which targets genetically validated cardiovascular pathways.
ARWR (Arrowhead Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $12.29B, a beta of 1.29 versus the broader market, a 52-week range of 18.14-95.49, average daily share volume of 2.1M, a public-listing history dating back to 1993, approximately 711 full-time employees. These structural characteristics shape how ARWR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.29 places ARWR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a long put on ARWR?
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.
ARWR snapshot
As of August 14, 2026, spot at $86.83, ATM IV 49.00%, IV rank 7.80%, expected move 14.05%. The long put on ARWR 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 35-day expiry.
Why this long put structure on ARWR specifically: ARWR IV at 49.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a ARWR long put, with a market-implied 1-standard-deviation move of approximately 14.05% (roughly $12.20 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 ARWR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARWR should anchor to the underlying notional of $86.83 per share and to the trader's directional view on ARWR stock.
ARWR long put setup
The ARWR 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 ARWR at $86.83 on that close, the first option leg uses a $87.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARWR 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 ARWR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $87.50 | $5.60 |
ARWR long put risk and reward
- Net Premium / Debit
- -$560.00
- Max Profit (per contract)
- $8,189.00
- Max Loss (per contract)
- -$560.00
- Breakeven(s)
- $81.90
- Risk / Reward Ratio
- 14.623
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
ARWR long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on ARWR. 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% | +$8,189.00 |
| $19.21 | -77.9% | +$6,269.25 |
| $38.40 | -55.8% | +$4,349.50 |
| $57.60 | -33.7% | +$2,429.75 |
| $76.80 | -11.6% | +$510.01 |
| $96.00 | +10.6% | -$560.00 |
| $115.19 | +32.7% | -$560.00 |
| $134.39 | +54.8% | -$560.00 |
| $153.59 | +76.9% | -$560.00 |
| $172.79 | +99.0% | -$560.00 |
When traders use long put on ARWR
Long puts on ARWR hedge an existing long ARWR stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ARWR exposure being hedged.
ARWR thesis for this long put
The market-implied 1-standard-deviation range for ARWR extends from approximately $74.63 on the downside to $99.03 on the upside. A ARWR long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long ARWR position with one put per 100 shares held. Current ARWR IV rank near 7.80% 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 ARWR at 49.00%. As a Healthcare name, ARWR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARWR-specific events.
ARWR 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. ARWR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ARWR alongside the broader basket even when ARWR-specific fundamentals are unchanged. Long-premium structures like a long put on ARWR 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 ARWR chain quotes before placing a trade.
Frequently asked questions
- What is a long put on ARWR?
- A long put on ARWR is the long put strategy applied to ARWR (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 ARWR stock at $86.83 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ARWR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ARWR 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 ARWR long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 49.00%), the computed maximum profit is $8,189.00 per contract and the computed maximum loss is -$560.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ARWR long put?
- The breakeven for the ARWR long put priced on this page is roughly $81.90 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 ARWR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.05%; 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 ARWR?
- Long puts on ARWR hedge an existing long ARWR stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ARWR exposure being hedged.
- How does current ARWR implied volatility affect this long put?
- ARWR ATM IV is at 49.00% with IV rank near 7.80%, 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.