BMI Long Put Strategy
BMI (Badger Meter, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.
Badger Meter, Inc. (BMI) provides a comprehensive range of solutions for flow measurement, quality assessment, control, and communication. Operating globally, the company serves markets across North America, Europe, Asia, and the Middle East. For municipal water utilities, BMI supplies both conventional and advanced water meters, complemented by associated radio, software, and service technologies. Additionally, Badger Meter engineers and produces a variety of flow instrumentation devices, including meters, valves, and sensing tools. These instruments are vital for measuring and controlling the flow of various substances—from water, air, and steam to oil and other liquids and gases—within industrial piping and pipelines. They are incorporated by original equipment manufacturers (OEMs) as primary measurement components within their products or systems and distributed through manufacturer representatives.
BMI (Badger Meter, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $4.11B, a trailing P/E of 31.52, a beta of 0.68 versus the broader market, a 52-week range of 112.09-249.56, average daily share volume of 611K, a public-listing history dating back to 1983, approximately 2K full-time employees. These structural characteristics shape how BMI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates BMI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BMI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on BMI?
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 BMI snapshot
As of June 30, 2026, spot at $148.06, ATM IV 35.40%, IV rank 25.29%, expected move 10.15%. The long put on BMI 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 BMI specifically: BMI IV at 35.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a BMI long put, with a market-implied 1-standard-deviation move of approximately 10.15% (roughly $15.03 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 BMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on BMI should anchor to the underlying notional of $148.06 per share and to the trader's directional view on BMI stock.
BMI long put setup
The BMI 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 BMI near $148.06, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BMI 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 BMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $150.00 | $5.90 |
BMI long put risk and reward
- Net Premium / Debit
- -$590.00
- Max Profit (per contract)
- $14,409.00
- Max Loss (per contract)
- -$590.00
- Breakeven(s)
- $144.10
- Risk / Reward Ratio
- 24.422
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
BMI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on BMI. 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% | +$14,409.00 |
| $32.75 | -77.9% | +$11,135.42 |
| $65.48 | -55.8% | +$7,861.84 |
| $98.22 | -33.7% | +$4,588.27 |
| $130.95 | -11.6% | +$1,314.69 |
| $163.69 | +10.6% | -$590.00 |
| $196.42 | +32.7% | -$590.00 |
| $229.16 | +54.8% | -$590.00 |
| $261.90 | +76.9% | -$590.00 |
| $294.63 | +99.0% | -$590.00 |
When traders use long put on BMI
Long puts on BMI hedge an existing long BMI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BMI exposure being hedged.
BMI thesis for this long put
The market-implied 1-standard-deviation range for BMI extends from approximately $133.03 on the downside to $163.09 on the upside. A BMI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long BMI position with one put per 100 shares held. Current BMI IV rank near 25.29% 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 BMI at 35.40%. As a Technology name, BMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BMI-specific events.
BMI 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. BMI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BMI alongside the broader basket even when BMI-specific fundamentals are unchanged. Long-premium structures like a long put on BMI 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 BMI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on BMI?
- A long put on BMI is the long put strategy applied to BMI (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 BMI stock trading near $148.06, the strikes shown on this page are snapped to the nearest listed BMI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BMI 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 BMI long put priced from the end-of-day chain at a 30-day expiry (ATM IV 35.40%), the computed maximum profit is $14,409.00 per contract and the computed maximum loss is -$590.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BMI long put?
- The breakeven for the BMI long put priced on this page is roughly $144.10 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 BMI market-implied 1-standard-deviation expected move is approximately 10.15%; 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 BMI?
- Long puts on BMI hedge an existing long BMI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BMI exposure being hedged.
- How does current BMI implied volatility affect this long put?
- BMI ATM IV is at 35.40% with IV rank near 25.29%, 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.