BJRI Long Put Strategy
BJRI (BJ's Restaurants, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
BJ's Restaurants, Inc. owns and operates casual dining restaurants in the United States. The company's restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts. As of April 19, 2022, it operated 213 restaurants in 29 states. The company was founded in 1978 and is based in Huntington Beach, California.
BJRI (BJ's Restaurants, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $868.8M, a trailing P/E of 19.72, a beta of 1.30 versus the broader market, a 52-week range of 28.46-47.02, average daily share volume of 390K, a public-listing history dating back to 1996, approximately 21K full-time employees. These structural characteristics shape how BJRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places BJRI 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 BJRI?
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 BJRI snapshot
As of May 15, 2026, spot at $42.11, ATM IV 39.50%, IV rank 25.13%, expected move 11.32%. The long put on BJRI 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 BJRI specifically: BJRI IV at 39.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a BJRI long put, with a market-implied 1-standard-deviation move of approximately 11.32% (roughly $4.77 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 BJRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on BJRI should anchor to the underlying notional of $42.11 per share and to the trader's directional view on BJRI stock.
BJRI long put setup
The BJRI 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 BJRI near $42.11, the first option leg uses a $42.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BJRI 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 BJRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $42.11 | N/A |
BJRI 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.
BJRI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on BJRI. 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 BJRI
Long puts on BJRI hedge an existing long BJRI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BJRI exposure being hedged.
BJRI thesis for this long put
The market-implied 1-standard-deviation range for BJRI extends from approximately $37.34 on the downside to $46.88 on the upside. A BJRI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long BJRI position with one put per 100 shares held. Current BJRI IV rank near 25.13% 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 BJRI at 39.50%. As a Consumer Cyclical name, BJRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BJRI-specific events.
BJRI 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. BJRI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BJRI alongside the broader basket even when BJRI-specific fundamentals are unchanged. Long-premium structures like a long put on BJRI 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 BJRI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on BJRI?
- A long put on BJRI is the long put strategy applied to BJRI (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 BJRI stock trading near $42.11, the strikes shown on this page are snapped to the nearest listed BJRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BJRI 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 BJRI long put priced from the end-of-day chain at a 30-day expiry (ATM IV 39.50%), 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 BJRI long put?
- The breakeven for the BJRI 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 BJRI market-implied 1-standard-deviation expected move is approximately 11.32%; 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 BJRI?
- Long puts on BJRI hedge an existing long BJRI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BJRI exposure being hedged.
- How does current BJRI implied volatility affect this long put?
- BJRI ATM IV is at 39.50% with IV rank near 25.13%, 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.