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 $63.81B, a trailing P/E of 20.57, a beta of 0.96 versus the broader market, a 52-week range of 41.96-70.41, average daily share volume of 8.6M, a public-listing history dating back to 1987, approximately 54K 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 0.96 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.
BKR snapshot
As of August 14, 2026, spot at $64.68, ATM IV 31.00%, IV rank 13.35%, expected move 8.89%. The long put on BKR 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 35-day expiry.
Why this long put structure on BKR specifically: BKR IV at 31.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a BKR long put, with a market-implied 1-standard-deviation move of approximately 8.89% (roughly $5.75 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 BKR expiries trade a higher absolute premium for lower per-day decay. Position sizing on BKR should anchor to the underlying notional of $64.68 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 August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BKR at $64.68 on that close, the first option leg uses a $65.00 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 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 BKR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $65.00 | $2.55 |
BKR long put risk and reward
- Net Premium / Debit
- -$255.00
- Max Profit (per contract)
- $6,244.00
- Max Loss (per contract)
- -$255.00
- Breakeven(s)
- $62.45
- Risk / Reward Ratio
- 24.486
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$6,244.00 |
| $14.31 | -77.9% | +$4,814.00 |
| $28.61 | -55.8% | +$3,384.00 |
| $42.91 | -33.7% | +$1,954.00 |
| $57.21 | -11.5% | +$524.00 |
| $71.51 | +10.6% | -$255.00 |
| $85.81 | +32.7% | -$255.00 |
| $100.11 | +54.8% | -$255.00 |
| $114.41 | +76.9% | -$255.00 |
| $128.71 | +99.0% | -$255.00 |
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 $58.93 on the downside to $70.43 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 13.35% 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 BKR at 31.00%. 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 at $64.68 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BKR chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.00%), the computed maximum profit is $6,244.00 per contract and the computed maximum loss is -$255.00 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 $62.45 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 BKR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.89%; 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 31.00% with IV rank near 13.35%, 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.