EIX Long Put Strategy
EIX (Edison International), in the Utilities sector, (Regulated Electric industry), listed on NYSE.
Headquartered in Rosemead, California, and established in 1886, Edison International primarily operates through its subsidiaries to produce and supply electrical power. This utility company furnishes electricity to a vast client base of around 15 million, encompassing homes, businesses, industrial sites, governmental bodies, and agricultural enterprises throughout Southern, Central, and Coastal California. Beyond power delivery, Edison International also offers bespoke energy solutions tailored for its commercial and industrial clientele. Its extensive infrastructure includes a robust transmission network featuring lines that range from 55 kV to 500 kV, alongside numerous substations. The company's distribution system is equally substantial, comprising approximately 39,000 circuit-miles of overhead cabling, roughly 31,000 circuit-miles of underground lines, and 800 distribution substations.
EIX (Edison International) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $29.12B, a trailing P/E of 7.87, a beta of 0.66 versus the broader market, a 52-week range of 49.14-76.22, average daily share volume of 2.7M, a public-listing history dating back to 1973, approximately 14K full-time employees. These structural characteristics shape how EIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.66 indicates EIX 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 7.87 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. EIX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on EIX?
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 EIX snapshot
As of June 30, 2026, spot at $75.13, ATM IV 27.00%, IV rank 13.00%, expected move 7.74%. The long put on EIX 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 EIX specifically: EIX IV at 27.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a EIX long put, with a market-implied 1-standard-deviation move of approximately 7.74% (roughly $5.82 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 EIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on EIX should anchor to the underlying notional of $75.13 per share and to the trader's directional view on EIX stock.
EIX long put setup
The EIX 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 EIX near $75.13, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EIX 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 EIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $75.00 | $2.00 |
EIX long put risk and reward
- Net Premium / Debit
- -$200.00
- Max Profit (per contract)
- $7,299.00
- Max Loss (per contract)
- -$200.00
- Breakeven(s)
- $73.00
- Risk / Reward Ratio
- 36.495
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
EIX long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on EIX. 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% | +$7,299.00 |
| $16.62 | -77.9% | +$5,637.94 |
| $33.23 | -55.8% | +$3,976.89 |
| $49.84 | -33.7% | +$2,315.83 |
| $66.45 | -11.6% | +$654.78 |
| $83.06 | +10.6% | -$200.00 |
| $99.67 | +32.7% | -$200.00 |
| $116.28 | +54.8% | -$200.00 |
| $132.89 | +76.9% | -$200.00 |
| $149.50 | +99.0% | -$200.00 |
When traders use long put on EIX
Long puts on EIX hedge an existing long EIX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying EIX exposure being hedged.
EIX thesis for this long put
The market-implied 1-standard-deviation range for EIX extends from approximately $69.31 on the downside to $80.95 on the upside. A EIX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long EIX position with one put per 100 shares held. Current EIX IV rank near 13.00% 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 EIX at 27.00%. As a Utilities name, EIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EIX-specific events.
EIX 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. EIX positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EIX alongside the broader basket even when EIX-specific fundamentals are unchanged. Long-premium structures like a long put on EIX 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 EIX chain quotes before placing a trade.
Frequently asked questions
- What is a long put on EIX?
- A long put on EIX is the long put strategy applied to EIX (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 EIX stock trading near $75.13, the strikes shown on this page are snapped to the nearest listed EIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EIX 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 EIX long put priced from the end-of-day chain at a 30-day expiry (ATM IV 27.00%), the computed maximum profit is $7,299.00 per contract and the computed maximum loss is -$200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EIX long put?
- The breakeven for the EIX long put priced on this page is roughly $73.00 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 EIX market-implied 1-standard-deviation expected move is approximately 7.74%; 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 EIX?
- Long puts on EIX hedge an existing long EIX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying EIX exposure being hedged.
- How does current EIX implied volatility affect this long put?
- EIX ATM IV is at 27.00% with IV rank near 13.00%, 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.