HUN Long Put Strategy
HUN (Huntsman Corporation), in the Basic Materials sector, (Chemicals industry), listed on NYSE.
Huntsman Corporation manufactures and sells differentiated organic chemical products worldwide. The company operates through four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyols, thermoplastic polyurethane, propylene oxide, and methyl tertiary-butyl ether products. The Performance Products segment manufactures amines and maleic anhydrides, including ethylene oxide, propylene oxide, glycols, ethylene dichloride, caustic soda, ammonia, hydrogen, methylamines, and acrylonitrile. The Advanced Materials segment offers epoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; high performance thermoset resins, curing agents and toughening agents, and carbon nanotubes additives; and base liquid and solid resins. The Textile Effects segment provides textile chemicals and dyes.
HUN (Huntsman Corporation) trades in the Basic Materials sector, specifically Chemicals, with a market capitalization of approximately $2.52B, a beta of 0.64 versus the broader market, a 52-week range of 7.3-15.9, average daily share volume of 6.5M, a public-listing history dating back to 2005, approximately 6K full-time employees. These structural characteristics shape how HUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates HUN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HUN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on HUN?
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 HUN snapshot
As of May 15, 2026, spot at $13.79, ATM IV 59.40%, IV rank 23.56%, expected move 17.03%. The long put on HUN 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 98-day expiry.
Why this long put structure on HUN specifically: HUN IV at 59.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a HUN long put, with a market-implied 1-standard-deviation move of approximately 17.03% (roughly $2.35 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on HUN should anchor to the underlying notional of $13.79 per share and to the trader's directional view on HUN stock.
HUN long put setup
The HUN 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 HUN near $13.79, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HUN chain at a 98-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 HUN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $14.00 | $1.88 |
HUN long put risk and reward
- Net Premium / Debit
- -$187.50
- Max Profit (per contract)
- $1,211.50
- Max Loss (per contract)
- -$187.50
- Breakeven(s)
- $12.13
- Risk / Reward Ratio
- 6.461
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
HUN long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on HUN. 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 | -99.9% | +$1,211.50 |
| $3.06 | -77.8% | +$906.71 |
| $6.11 | -55.7% | +$601.91 |
| $9.15 | -33.6% | +$297.12 |
| $12.20 | -11.5% | -$7.68 |
| $15.25 | +10.6% | -$187.50 |
| $18.30 | +32.7% | -$187.50 |
| $21.35 | +54.8% | -$187.50 |
| $24.39 | +76.9% | -$187.50 |
| $27.44 | +99.0% | -$187.50 |
When traders use long put on HUN
Long puts on HUN hedge an existing long HUN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying HUN exposure being hedged.
HUN thesis for this long put
The market-implied 1-standard-deviation range for HUN extends from approximately $11.44 on the downside to $16.14 on the upside. A HUN long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long HUN position with one put per 100 shares held. Current HUN IV rank near 23.56% 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 HUN at 59.40%. As a Basic Materials name, HUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HUN-specific events.
HUN 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. HUN positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HUN alongside the broader basket even when HUN-specific fundamentals are unchanged. Long-premium structures like a long put on HUN 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 HUN chain quotes before placing a trade.
Frequently asked questions
- What is a long put on HUN?
- A long put on HUN is the long put strategy applied to HUN (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 HUN stock trading near $13.79, the strikes shown on this page are snapped to the nearest listed HUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HUN 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 HUN long put priced from the end-of-day chain at a 30-day expiry (ATM IV 59.40%), the computed maximum profit is $1,211.50 per contract and the computed maximum loss is -$187.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HUN long put?
- The breakeven for the HUN long put priced on this page is roughly $12.13 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 HUN market-implied 1-standard-deviation expected move is approximately 17.03%; 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 HUN?
- Long puts on HUN hedge an existing long HUN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying HUN exposure being hedged.
- How does current HUN implied volatility affect this long put?
- HUN ATM IV is at 59.40% with IV rank near 23.56%, 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.