GNW Long Put Strategy
GNW (Genworth Financial, Inc.), in the Financial Services sector, (Insurance - Diversified industry), listed on NYSE.
Genworth Financial, Inc., together with its subsidiaries, provides mortgage and long-term care insurance products in the United States. It operates through two segments: Enact and Closed Block. The company offers primary mortgage, and mortgage insurance products, and contract underwriting services. It also provides long-term care insurance products that are intended to protect against the significant and escalating costs of long-term care services provided in the insured’s home, assisted living, and nursing facilities. In addition, the company offers protection and retirement income products, that includes traditional and non-traditional life insurance, such as term, universal and term universal life insurance, corporate-owned life insurance, and funding agreements; fixed annuities; and variable annuities. It distributes its products through sales force, sales representatives, and digital marketing programs.
GNW (Genworth Financial, Inc.) trades in the Financial Services sector, specifically Insurance - Diversified, with a market capitalization of approximately $3.89B, a trailing P/E of 18.27, a beta of 0.86 versus the broader market, a 52-week range of 7.84-10.2, average daily share volume of 2.8M, a public-listing history dating back to 2004, approximately 3K full-time employees. These structural characteristics shape how GNW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places GNW roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GNW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on GNW?
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.
GNW snapshot
As of August 14, 2026, spot at $10.14, ATM IV 13.20%, IV rank 2.45%, expected move 3.78%. The long put on GNW below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this long put structure on GNW specifically: GNW IV at 13.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a GNW long put, with a market-implied 1-standard-deviation move of approximately 3.78% (roughly $0.38 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GNW expiries trade a higher absolute premium for lower per-day decay. Position sizing on GNW should anchor to the underlying notional of $10.14 per share and to the trader's directional view on GNW stock.
GNW long put setup
The GNW 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 GNW at $10.14 on that close, the first option leg uses a $10.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GNW chain at a 35-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 GNW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $10.14 | N/A |
GNW 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.
GNW long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on GNW. 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 GNW
Long puts on GNW hedge an existing long GNW stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying GNW exposure being hedged.
GNW thesis for this long put
The market-implied 1-standard-deviation range for GNW extends from approximately $9.76 on the downside to $10.52 on the upside. A GNW long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long GNW position with one put per 100 shares held. Current GNW IV rank near 2.45% 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 GNW at 13.20%. As a Financial Services name, GNW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GNW-specific events.
GNW 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. GNW positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GNW alongside the broader basket even when GNW-specific fundamentals are unchanged. Long-premium structures like a long put on GNW 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 GNW chain quotes before placing a trade.
Frequently asked questions
- What is a long put on GNW?
- A long put on GNW is the long put strategy applied to GNW (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 GNW stock at $10.14 on the most recent close, the strikes shown on this page are snapped to the nearest listed GNW chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are GNW 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 GNW long put priced from the end-of-day chain at a 30-day expiry (ATM IV 13.20%), 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 GNW long put?
- The breakeven for the GNW long put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The GNW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.78%; 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 GNW?
- Long puts on GNW hedge an existing long GNW stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying GNW exposure being hedged.
- How does current GNW implied volatility affect this long put?
- GNW ATM IV is at 13.20% with IV rank near 2.45%, 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.