BHVN Long Put Strategy
BHVN (Biohaven Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NYSE.
Biohaven Ltd., a biopharmaceutical company, focuses on the discovery, development, and commercialization of treatments for immunology, neuroscience, and oncology therapeutic areas worldwide. It develops BHV-1300, which is in Phase 2 clinical trial to treat Graves' disease and rheumatoid arthritis; BHV-1400 that is in Phase 2 clinical trial for treating IgA nephropathy; BHV-1600, which is in Phase 1 clinical trial for the treatment of peripartum cardiomyopathy; BHV-8000 that is in Phase 3 clinical trial for treating Parkinson's disease; Opakalim, which is in Phase 3 clinical trial for the treatment of focal epilepsy; BHV-2100 that is in Phase 2 clinical trial for the treatment of pain disorders; and BHV-2000, which is in Phase 2 clinical trial for treating obesity. The company is also developing BHV-1510 that is in Phase 2 clinical trial for the treatment of advanced or metastatic epithelial tumors; and BHV-1530, which is in Phase 2 clinical trial for treating urothelial cancer and other tumors. In addition, its preclinical product pipeline includes BHV-1310 for treating myasthenia gravis; BHV-1320 for treating immune mediated-diseases; BHV-1450 for treating Pemphigus, MuSK MG, and LGI-1 Encephalitis; BHV-1420 for treating membranous nephropathy; BHV-1440 for treating Graves' disease and TED; BHV-6500 for treating type 1 diabetes; BHV-1490 for treating IgM neuropathy and Waldenstrom's; BHV-8100 for treating neurodegenerative diseases; and BHV-1955 for treating tinnitus. The company was formerly known as Biohaven Research Ltd. and changed its name to Biohaven Ltd. in September 2022. Biohaven Ltd. was incorporated in 2022 and is headquartered in New Haven, Connecticut.
BHVN (Biohaven Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.09B, a beta of 3.14 versus the broader market, a 52-week range of 7.81-18.24, average daily share volume of 2.8M, a public-listing history dating back to 2022, approximately 274 full-time employees. These structural characteristics shape how BHVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.14 indicates BHVN 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 BHVN?
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.
BHVN snapshot
As of November 13, 2026, spot at $13.72, ATM IV 89.50%, IV rank 18.29%, expected move 25.66%. The long put on BHVN below is built from the November 13, 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 BHVN specifically: BHVN IV at 89.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a BHVN long put, with a market-implied 1-standard-deviation move of approximately 25.66% (roughly $3.52 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 BHVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on BHVN should anchor to the underlying notional of $13.72 per share and to the trader's directional view on BHVN stock.
BHVN long put setup
The BHVN long put below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BHVN at $13.72 on that close, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BHVN 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 BHVN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $14.00 | $1.60 |
BHVN long put risk and reward
- Net Premium / Debit
- -$160.00
- Max Profit (per contract)
- $1,239.00
- Max Loss (per contract)
- -$160.00
- Breakeven(s)
- $12.40
- Risk / Reward Ratio
- 7.744
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
BHVN long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on BHVN. 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 | -99.9% | +$1,239.00 |
| $3.04 | -77.8% | +$935.75 |
| $6.07 | -55.7% | +$632.51 |
| $9.11 | -33.6% | +$329.26 |
| $12.14 | -11.5% | +$26.02 |
| $15.17 | +10.6% | -$160.00 |
| $18.20 | +32.7% | -$160.00 |
| $21.24 | +54.8% | -$160.00 |
| $24.27 | +76.9% | -$160.00 |
| $27.30 | +99.0% | -$160.00 |
When traders use long put on BHVN
Long puts on BHVN hedge an existing long BHVN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BHVN exposure being hedged.
BHVN thesis for this long put
The market-implied 1-standard-deviation range for BHVN extends from approximately $10.20 on the downside to $17.24 on the upside. A BHVN long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long BHVN position with one put per 100 shares held. Current BHVN IV rank near 18.29% 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 BHVN at 89.50%. As a Healthcare name, BHVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BHVN-specific events.
BHVN 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. BHVN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BHVN alongside the broader basket even when BHVN-specific fundamentals are unchanged. Long-premium structures like a long put on BHVN 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 BHVN chain quotes before placing a trade.
Frequently asked questions
- What is a long put on BHVN?
- A long put on BHVN is the long put strategy applied to BHVN (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 BHVN stock at $13.72 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed BHVN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BHVN 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 BHVN long put priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 89.50%), the computed maximum profit is $1,239.00 per contract and the computed maximum loss is -$160.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BHVN long put?
- The breakeven for the BHVN long put priced on this page is roughly $12.40 at expiration, derived from the November 13, 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 BHVN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 25.66%; 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 BHVN?
- Long puts on BHVN hedge an existing long BHVN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BHVN exposure being hedged.
- How does current BHVN implied volatility affect this long put?
- BHVN ATM IV is at 89.50% with IV rank near 18.29%, 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.