BDN Long Put Strategy
BDN (Brandywine Realty Trust), in the Real Estate sector, (REIT - Office industry), listed on NYSE.
Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia, Austin and Washington, D.C. markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 175 properties and 24.7 million square feet as of December 31, 2020 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.
BDN (Brandywine Realty Trust) trades in the Real Estate sector, specifically REIT - Office, with a market capitalization of approximately $524.6M, a beta of 1.26 versus the broader market, a 52-week range of 2.47-4.63, average daily share volume of 2.6M, a public-listing history dating back to 1986, approximately 285 full-time employees. These structural characteristics shape how BDN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places BDN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BDN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on BDN?
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 BDN snapshot
As of May 15, 2026, spot at $2.99, ATM IV 498.60%, IV rank 100.00%, expected move 142.94%. The long put on BDN 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 BDN specifically: BDN IV at 498.60% is rich versus its 1-year range, which makes a premium-buying BDN long put relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 142.94% (roughly $4.27 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 BDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on BDN should anchor to the underlying notional of $2.99 per share and to the trader's directional view on BDN stock.
BDN long put setup
The BDN 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 BDN near $2.99, the first option leg uses a $2.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BDN 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 BDN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $2.99 | N/A |
BDN 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.
BDN long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on BDN. 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 BDN
Long puts on BDN hedge an existing long BDN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BDN exposure being hedged.
BDN thesis for this long put
The market-implied 1-standard-deviation range for BDN extends from approximately $-1.28 on the downside to $7.26 on the upside. A BDN long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long BDN position with one put per 100 shares held. Current BDN IV rank near 100.00% 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 BDN at 498.60%. As a Real Estate name, BDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BDN-specific events.
BDN 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. BDN positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BDN alongside the broader basket even when BDN-specific fundamentals are unchanged. Long-premium structures like a long put on BDN 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 BDN chain quotes before placing a trade.
Frequently asked questions
- What is a long put on BDN?
- A long put on BDN is the long put strategy applied to BDN (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 BDN stock trading near $2.99, the strikes shown on this page are snapped to the nearest listed BDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BDN 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 BDN long put priced from the end-of-day chain at a 30-day expiry (ATM IV 498.60%), 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 BDN long put?
- The breakeven for the BDN long put priced on this page is no defined breakeven on the modeled curve 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 BDN market-implied 1-standard-deviation expected move is approximately 142.94%; 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 BDN?
- Long puts on BDN hedge an existing long BDN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BDN exposure being hedged.
- How does current BDN implied volatility affect this long put?
- BDN ATM IV is at 498.60% with IV rank near 100.00%, 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.