GHM Long Put Strategy
GHM (Graham Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Graham Corporation, founded in 1936 and based in Batavia, New York, is an engineering and manufacturing company that, along with its subsidiaries, specializes in creating advanced fluid, power, heat transfer, and vacuum equipment. This specialized machinery serves a broad spectrum of critical industries, including chemical and petrochemical processing, defense, aerospace, petroleum refining, cryogenic applications, and energy. The company's diverse product range includes: Power Generation Solutions: Such as ejectors and surface condensers for power plants, as well as turbines, generators, compressors, and pumps. Defense and Space Technologies: Providing torpedo ejection and power systems that integrate turbines, alternators, regulators, pumps, and blowers; also supplying rocket propulsion systems like turbopumps and fuel pumps. Thermal Management and Life Support Systems: Offering pumps, blowers, and electronics for thermal control, cooling systems featuring pumps, compressors, fans, and blowers, and life support equipment comprising fans, pumps, and blowers. Heat Transfer and Vacuum Equipment: Including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, nozzles, and turbomachinery products.
GHM (Graham Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $1.42B, a trailing P/E of 106.94, a beta of 1.05 versus the broader market, a 52-week range of 46.08-124.03, average daily share volume of 222K, a public-listing history dating back to 1980, approximately 595 full-time employees. These structural characteristics shape how GHM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.05 places GHM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 106.94 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a long put on GHM?
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 GHM snapshot
As of June 30, 2026, spot at $124.25, ATM IV 50.20%, IV rank 18.95%, expected move 14.39%. The long put on GHM 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 52-day expiry.
Why this long put structure on GHM specifically: GHM IV at 50.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a GHM long put, with a market-implied 1-standard-deviation move of approximately 14.39% (roughly $17.88 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GHM expiries trade a higher absolute premium for lower per-day decay. Position sizing on GHM should anchor to the underlying notional of $124.25 per share and to the trader's directional view on GHM stock.
GHM long put setup
The GHM 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 GHM near $124.25, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GHM chain at a 52-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 GHM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $125.00 | $11.65 |
GHM long put risk and reward
- Net Premium / Debit
- -$1,165.00
- Max Profit (per contract)
- $11,334.00
- Max Loss (per contract)
- -$1,165.00
- Breakeven(s)
- $113.35
- Risk / Reward Ratio
- 9.729
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
GHM long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on GHM. 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% | +$11,334.00 |
| $27.48 | -77.9% | +$8,586.87 |
| $54.95 | -55.8% | +$5,839.75 |
| $82.42 | -33.7% | +$3,092.62 |
| $109.90 | -11.6% | +$345.50 |
| $137.37 | +10.6% | -$1,165.00 |
| $164.84 | +32.7% | -$1,165.00 |
| $192.31 | +54.8% | -$1,165.00 |
| $219.78 | +76.9% | -$1,165.00 |
| $247.25 | +99.0% | -$1,165.00 |
When traders use long put on GHM
Long puts on GHM hedge an existing long GHM stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying GHM exposure being hedged.
GHM thesis for this long put
The market-implied 1-standard-deviation range for GHM extends from approximately $106.37 on the downside to $142.13 on the upside. A GHM long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long GHM position with one put per 100 shares held. Current GHM IV rank near 18.95% 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 GHM at 50.20%. As a Industrials name, GHM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GHM-specific events.
GHM 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. GHM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GHM alongside the broader basket even when GHM-specific fundamentals are unchanged. Long-premium structures like a long put on GHM 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 GHM chain quotes before placing a trade.
Frequently asked questions
- What is a long put on GHM?
- A long put on GHM is the long put strategy applied to GHM (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 GHM stock trading near $124.25, the strikes shown on this page are snapped to the nearest listed GHM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GHM 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 GHM long put priced from the end-of-day chain at a 30-day expiry (ATM IV 50.20%), the computed maximum profit is $11,334.00 per contract and the computed maximum loss is -$1,165.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GHM long put?
- The breakeven for the GHM long put priced on this page is roughly $113.35 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 GHM market-implied 1-standard-deviation expected move is approximately 14.39%; 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 GHM?
- Long puts on GHM hedge an existing long GHM stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying GHM exposure being hedged.
- How does current GHM implied volatility affect this long put?
- GHM ATM IV is at 50.20% with IV rank near 18.95%, 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.