How are BKR 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 BKR long put priced from the end-of-day chain at a 30-day expiry (ATM IV 35.30%), the computed maximum profit is $5,371.50 per contract and the computed maximum loss is -$127.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BKR long put?

The breakeven for the BKR long put priced on this page is roughly $53.73 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 BKR market-implied 1-standard-deviation expected move is approximately 10.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BKR implied volatility affect this long put?

BKR ATM IV is at 35.30% with IV rank near 54.57%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

BKR Long Put Strategy

BKR (Baker Hughes Company), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.

Baker Hughes Co. is a holding company, which engages in the provision of oilfield products, services, and digital solutions. It operates through the Oilfield Services and Equipment (OFSE) and industrial and Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides services for onshore and offshore oilfield operations. The IET segment combines expertise, technologies, and services for industrial and energy customers including on and off-shore, LNG, pipeline and gas storage, refining, petrochemical, distributed gas, flow and process control, and industrial segments such as nuclear, aviation, automotive, marine, food and beverage, mining, cement and utilities. The company was founded in April 1987 and is headquartered in Houston, TX.

BKR (Baker Hughes Company) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $56.11B, a trailing P/E of 17.97, a beta of 0.94 versus the broader market, a 52-week range of 37.69-70.41, average daily share volume of 8.2M, a public-listing history dating back to 1987, approximately 56K full-time employees. These structural characteristics shape how BKR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.94 places BKR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BKR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on BKR?

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 BKR snapshot

As of June 30, 2026, spot at $55.71, ATM IV 35.30%, IV rank 54.57%, expected move 10.12%. The long put on BKR 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 17-day expiry.

Why this long put structure on BKR specifically: BKR IV at 35.30% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 10.12% (roughly $5.64 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BKR expiries trade a higher absolute premium for lower per-day decay. Position sizing on BKR should anchor to the underlying notional of $55.71 per share and to the trader's directional view on BKR stock.

BKR long put setup

The BKR 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 BKR near $55.71, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BKR chain at a 17-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 BKR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$55.00	$1.28

BKR long put risk and reward

Net Premium / Debit: -$127.50
Max Profit (per contract): $5,371.50
Max Loss (per contract): -$127.50
Breakeven(s): $53.73
Risk / Reward Ratio: 42.129

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

BKR long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on BKR. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$5,371.50
$12.33	-77.9%	+$4,139.83
$24.64	-55.8%	+$2,908.16
$36.96	-33.7%	+$1,676.49
$49.28	-11.5%	+$444.83
$61.59	+10.6%	-$127.50
$73.91	+32.7%	-$127.50
$86.23	+54.8%	-$127.50
$98.54	+76.9%	-$127.50
$110.86	+99.0%	-$127.50

When traders use long put on BKR

Long puts on BKR hedge an existing long BKR stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BKR exposure being hedged.

BKR thesis for this long put

The market-implied 1-standard-deviation range for BKR extends from approximately $50.07 on the downside to $61.35 on the upside. A BKR long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long BKR position with one put per 100 shares held. Current BKR IV rank near 54.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on BKR should anchor more to the directional view and the expected-move geometry. As a Energy name, BKR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BKR-specific events.

BKR 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. BKR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BKR alongside the broader basket even when BKR-specific fundamentals are unchanged. Long-premium structures like a long put on BKR 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 BKR chain quotes before placing a trade.

Frequently asked questions

What is a long put on BKR?: A long put on BKR is the long put strategy applied to BKR (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 BKR stock trading near $55.71, the strikes shown on this page are snapped to the nearest listed BKR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BKR 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 BKR long put priced from the end-of-day chain at a 30-day expiry (ATM IV 35.30%), the computed maximum profit is $5,371.50 per contract and the computed maximum loss is -$127.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BKR long put?: The breakeven for the BKR long put priced on this page is roughly $53.73 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 BKR market-implied 1-standard-deviation expected move is approximately 10.12%; 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 BKR?: Long puts on BKR hedge an existing long BKR stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BKR exposure being hedged.
How does current BKR implied volatility affect this long put?: BKR ATM IV is at 35.30% with IV rank near 54.57%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.