FPI Long Put Strategy
FPI (Farmland Partners Inc.), in the Real Estate sector, (REIT - Specialty industry), listed on NYSE.
Farmland Partners Inc. functions as an internally managed real estate enterprise, primarily focused on acquiring and holding premium North American agricultural land. The company also provides secured loans to farmers, collateralized by their farm real estate. As of the most recent disclosure, its expansive portfolio includes approximately 155,000 acres distributed across 16 U.S. states, covering significant agricultural areas from Alabama to Virginia. This diversified land base supports nearly 26 different crop varieties and is utilized by over 100 distinct agricultural tenants. Farmland Partners Inc. chose to be taxed as a Real Estate Investment Trust (REIT) for U.S. federal income tax purposes, commencing with the fiscal year that ended December 31, 2014.
FPI (Farmland Partners Inc.) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $432.2M, a trailing P/E of 14.20, a beta of 0.68 versus the broader market, a 52-week range of 9.365-13.225, average daily share volume of 362K, a public-listing history dating back to 2014, approximately 23 full-time employees. These structural characteristics shape how FPI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates FPI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FPI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on FPI?
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 FPI snapshot
As of June 30, 2026, spot at $9.68, ATM IV 9.10%, IV rank 2.09%, expected move 2.61%. The long put on FPI 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 FPI specifically: FPI IV at 9.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a FPI long put, with a market-implied 1-standard-deviation move of approximately 2.61% (roughly $0.25 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 FPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on FPI should anchor to the underlying notional of $9.68 per share and to the trader's directional view on FPI stock.
FPI long put setup
The FPI 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 FPI near $9.68, the first option leg uses a $9.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FPI 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 FPI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $9.68 | N/A |
FPI 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.
FPI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on FPI. 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 FPI
Long puts on FPI hedge an existing long FPI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying FPI exposure being hedged.
FPI thesis for this long put
The market-implied 1-standard-deviation range for FPI extends from approximately $9.43 on the downside to $9.93 on the upside. A FPI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long FPI position with one put per 100 shares held. Current FPI IV rank near 2.09% 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 FPI at 9.10%. As a Real Estate name, FPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FPI-specific events.
FPI 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. FPI positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FPI alongside the broader basket even when FPI-specific fundamentals are unchanged. Long-premium structures like a long put on FPI 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 FPI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on FPI?
- A long put on FPI is the long put strategy applied to FPI (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 FPI stock trading near $9.68, the strikes shown on this page are snapped to the nearest listed FPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FPI 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 FPI long put priced from the end-of-day chain at a 30-day expiry (ATM IV 9.10%), 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 FPI long put?
- The breakeven for the FPI 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 FPI market-implied 1-standard-deviation expected move is approximately 2.61%; 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 FPI?
- Long puts on FPI hedge an existing long FPI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying FPI exposure being hedged.
- How does current FPI implied volatility affect this long put?
- FPI ATM IV is at 9.10% with IV rank near 2.09%, 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.