BOBS Long Put Strategy
BOBS (Bob's Discount Furniture, Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NYSE.
Bob's Discount Furniture, Inc. engages in retailing home furnishings in the United States. It provides products in several categories including living rooms, bedrooms, mattresses, dining rooms, occasional tables, lamps, outdoors, and accessories. The company sells its products through Internet. The company was formerly known as BDF Holding Corp. and changed its name to Bob's Discount Furniture, Inc. in October 2025. The company was founded in 1991 and is based in Manchester, Connecticut.
BOBS (Bob's Discount Furniture, Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $1.60B, a trailing P/E of 11.13, a beta of 0.00 versus the broader market, a 52-week range of 9.74-23.49, average daily share volume of 1.2M, a public-listing history dating back to 1991, approximately 6K full-time employees. These structural characteristics shape how BOBS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates BOBS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.13 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a long put on BOBS?
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 BOBS snapshot
As of May 15, 2026, spot at $11.66, ATM IV 79.00%, expected move 22.65%. The long put on BOBS 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 BOBS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for BOBS is inferred from ATM IV at 79.00% alone, with a market-implied 1-standard-deviation move of approximately 22.65% (roughly $2.64 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 BOBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on BOBS should anchor to the underlying notional of $11.66 per share and to the trader's directional view on BOBS stock.
BOBS long put setup
The BOBS 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 BOBS near $11.66, the first option leg uses a $11.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BOBS 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 BOBS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $11.66 | N/A |
BOBS 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.
BOBS long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on BOBS. 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 BOBS
Long puts on BOBS hedge an existing long BOBS stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BOBS exposure being hedged.
BOBS thesis for this long put
The market-implied 1-standard-deviation range for BOBS extends from approximately $9.02 on the downside to $14.30 on the upside. A BOBS long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long BOBS position with one put per 100 shares held. As a Consumer Cyclical name, BOBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BOBS-specific events.
BOBS 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. BOBS positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BOBS alongside the broader basket even when BOBS-specific fundamentals are unchanged. Long-premium structures like a long put on BOBS 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 BOBS chain quotes before placing a trade.
Frequently asked questions
- What is a long put on BOBS?
- A long put on BOBS is the long put strategy applied to BOBS (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 BOBS stock trading near $11.66, the strikes shown on this page are snapped to the nearest listed BOBS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BOBS 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 BOBS long put priced from the end-of-day chain at a 30-day expiry (ATM IV 79.00%), 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 BOBS long put?
- The breakeven for the BOBS 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 BOBS market-implied 1-standard-deviation expected move is approximately 22.65%; 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 BOBS?
- Long puts on BOBS hedge an existing long BOBS stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BOBS exposure being hedged.
- How does current BOBS implied volatility affect this long put?
- Current BOBS ATM IV is 79.00%; IV rank context is unavailable in the current snapshot.