AX Long Put Strategy
AX (Axos Financial, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Founded in Las Vegas, Nevada, in 1999, Axos Financial, Inc. is a U.S.-based financial institution that delivers a comprehensive array of banking services to both individual consumers and businesses. The company operates through two primary divisions: its core Banking Business and its Securities Business. For deposits, Axos provides a broad spectrum of options including checking, savings, demand, money market, and time deposit accounts, alongside specialized products such as zero balance and insured cash sweep accounts. Its diverse lending portfolio encompasses various mortgage types, such as single-family, multi-family, and commercial real estate-backed loans. They also extend commercial and industrial loans, comprising non-real estate, asset-backed, term loans, and lines of credit. Consumer lending encompasses automobile loans, fixed-rate unsecured loans, and unique offerings such as structured settlements, Small Business Administration (SBA) loans, and securities-backed financing.
AX (Axos Financial, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $5.81B, a trailing P/E of 11.82, a beta of 1.23 versus the broader market, a 52-week range of 74.89-105.74, average daily share volume of 396K, a public-listing history dating back to 2005, approximately 2K full-time employees. These structural characteristics shape how AX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places AX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.82 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a long put on AX?
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.
AX snapshot
As of August 14, 2026, spot at $102.66, ATM IV 26.60%, IV rank 3.85%, expected move 7.63%. The long put on AX 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 7-day expiry.
Why this long put structure on AX specifically: AX IV at 26.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a AX long put, with a market-implied 1-standard-deviation move of approximately 7.63% (roughly $7.83 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AX should anchor to the underlying notional of $102.66 per share and to the trader's directional view on AX stock.
AX long put setup
The AX 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 AX at $102.66 on that close, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AX chain at a 7-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 AX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $105.00 | $3.68 |
AX long put risk and reward
- Net Premium / Debit
- -$367.50
- Max Profit (per contract)
- $10,131.50
- Max Loss (per contract)
- -$367.50
- Breakeven(s)
- $101.33
- Risk / Reward Ratio
- 27.569
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
AX long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on AX. 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% | +$10,131.50 |
| $22.71 | -77.9% | +$7,861.74 |
| $45.41 | -55.8% | +$5,591.98 |
| $68.10 | -33.7% | +$3,322.22 |
| $90.80 | -11.6% | +$1,052.46 |
| $113.50 | +10.6% | -$367.50 |
| $136.20 | +32.7% | -$367.50 |
| $158.89 | +54.8% | -$367.50 |
| $181.59 | +76.9% | -$367.50 |
| $204.29 | +99.0% | -$367.50 |
When traders use long put on AX
Long puts on AX hedge an existing long AX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AX exposure being hedged.
AX thesis for this long put
The market-implied 1-standard-deviation range for AX extends from approximately $94.83 on the downside to $110.49 on the upside. A AX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long AX position with one put per 100 shares held. Current AX IV rank near 3.85% 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 AX at 26.60%. As a Financial Services name, AX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AX-specific events.
AX 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. AX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AX alongside the broader basket even when AX-specific fundamentals are unchanged. Long-premium structures like a long put on AX 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 AX chain quotes before placing a trade.
Frequently asked questions
- What is a long put on AX?
- A long put on AX is the long put strategy applied to AX (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 AX stock at $102.66 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AX 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 AX long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.60%), the computed maximum profit is $10,131.50 per contract and the computed maximum loss is -$367.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AX long put?
- The breakeven for the AX long put priced on this page is roughly $101.33 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 AX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.63%; 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 AX?
- Long puts on AX hedge an existing long AX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AX exposure being hedged.
- How does current AX implied volatility affect this long put?
- AX ATM IV is at 26.60% with IV rank near 3.85%, 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.