How are BTU 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 BTU long put priced from the end-of-day chain at a 30-day expiry (ATM IV 58.51%), the computed maximum profit is $2,247.50 per contract and the computed maximum loss is -$151.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BTU long put?

The breakeven for the BTU long put priced on this page is roughly $22.49 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 BTU market-implied 1-standard-deviation expected move is approximately 16.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BTU implied volatility affect this long put?

BTU ATM IV is at 58.51% with IV rank near 33.55%, 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.

BTU Long Put Strategy

BTU (Peabody Energy Corporation), in the Energy sector, (Coal industry), listed on NYSE.

Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Indonesia, China, Vietnam, South Korea, and internationally. The company operates through Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining segments. It is involved in mining, preparation, and sale of thermal coal primarily to electric utilities; mining bituminous and sub-bituminous coal deposits; and mining metallurgical coal, such as hard coking coal, semi-hard coking coal, semi-soft coking coal, and pulverized coal injection coal. The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. As of December 31, 2021, it owned interests in 17 coal mining operations located in the United States and Australia; and had approximately 2.5 billion tons of proven and probable coal reserves and approximately 450,000 acres of surface property through ownership and lease agreements.

BTU (Peabody Energy Corporation) trades in the Energy sector, specifically Coal, with a market capitalization of approximately $2.93B, a beta of 0.34 versus the broader market, a 52-week range of 12.58-41.14, average daily share volume of 3.5M, a public-listing history dating back to 2017, approximately 6K full-time employees. These structural characteristics shape how BTU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.34 indicates BTU has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BTU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on BTU?

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 BTU snapshot

As of May 15, 2026, spot at $23.94, ATM IV 58.51%, IV rank 33.55%, expected move 16.78%. The long put on BTU 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 28-day expiry.

Why this long put structure on BTU specifically: BTU IV at 58.51% 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 16.78% (roughly $4.02 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BTU expiries trade a higher absolute premium for lower per-day decay. Position sizing on BTU should anchor to the underlying notional of $23.94 per share and to the trader's directional view on BTU stock.

BTU long put setup

The BTU 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 BTU near $23.94, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BTU chain at a 28-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 BTU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$24.00	$1.52

BTU long put risk and reward

Net Premium / Debit: -$151.50
Max Profit (per contract): $2,247.50
Max Loss (per contract): -$151.50
Breakeven(s): $22.49
Risk / Reward Ratio: 14.835

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

BTU long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on BTU. 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%	+$2,247.50
$5.30	-77.9%	+$1,718.28
$10.59	-55.7%	+$1,189.07
$15.89	-33.6%	+$659.85
$21.18	-11.5%	+$130.64
$26.47	+10.6%	-$151.50
$31.76	+32.7%	-$151.50
$37.06	+54.8%	-$151.50
$42.35	+76.9%	-$151.50
$47.64	+99.0%	-$151.50

When traders use long put on BTU

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

BTU thesis for this long put

The market-implied 1-standard-deviation range for BTU extends from approximately $19.92 on the downside to $27.96 on the upside. A BTU long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long BTU position with one put per 100 shares held. Current BTU IV rank near 33.55% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on BTU should anchor more to the directional view and the expected-move geometry. As a Energy name, BTU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BTU-specific events.

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

Frequently asked questions

What is a long put on BTU?: A long put on BTU is the long put strategy applied to BTU (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 BTU stock trading near $23.94, the strikes shown on this page are snapped to the nearest listed BTU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BTU 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 BTU long put priced from the end-of-day chain at a 30-day expiry (ATM IV 58.51%), the computed maximum profit is $2,247.50 per contract and the computed maximum loss is -$151.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BTU long put?: The breakeven for the BTU long put priced on this page is roughly $22.49 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 BTU market-implied 1-standard-deviation expected move is approximately 16.78%; 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 BTU?: Long puts on BTU hedge an existing long BTU stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BTU exposure being hedged.
How does current BTU implied volatility affect this long put?: BTU ATM IV is at 58.51% with IV rank near 33.55%, 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.