IIPR Long Put Strategy
IIPR (Innovative Industrial Properties, Inc.), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.
IIPR (Innovative Industrial Properties, Inc.) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $1.58B, a trailing P/E of 12.82, a beta of 1.45 versus the broader market, a 52-week range of 44.58-61.395, average daily share volume of 349K, a public-listing history dating back to 2016, approximately 21 full-time employees. These structural characteristics shape how IIPR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates IIPR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. IIPR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on IIPR?
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 IIPR snapshot
As of May 15, 2026, spot at $54.23, ATM IV 38.60%, IV rank 5.60%, expected move 11.07%. The long put on IIPR 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 34-day expiry.
Why this long put structure on IIPR specifically: IIPR IV at 38.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a IIPR long put, with a market-implied 1-standard-deviation move of approximately 11.07% (roughly $6.00 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IIPR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IIPR should anchor to the underlying notional of $54.23 per share and to the trader's directional view on IIPR stock.
IIPR long put setup
The IIPR 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 IIPR near $54.23, the first option leg uses a $54.23 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IIPR chain at a 34-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 IIPR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $54.23 | N/A |
IIPR 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.
IIPR long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on IIPR. 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 IIPR
Long puts on IIPR hedge an existing long IIPR stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying IIPR exposure being hedged.
IIPR thesis for this long put
The market-implied 1-standard-deviation range for IIPR extends from approximately $48.23 on the downside to $60.23 on the upside. A IIPR long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long IIPR position with one put per 100 shares held. Current IIPR IV rank near 5.60% 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 IIPR at 38.60%. As a Real Estate name, IIPR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IIPR-specific events.
IIPR 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. IIPR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IIPR alongside the broader basket even when IIPR-specific fundamentals are unchanged. Long-premium structures like a long put on IIPR 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 IIPR chain quotes before placing a trade.
Frequently asked questions
- What is a long put on IIPR?
- A long put on IIPR is the long put strategy applied to IIPR (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 IIPR stock trading near $54.23, the strikes shown on this page are snapped to the nearest listed IIPR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IIPR 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 IIPR long put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.60%), 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 IIPR long put?
- The breakeven for the IIPR 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 IIPR market-implied 1-standard-deviation expected move is approximately 11.07%; 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 IIPR?
- Long puts on IIPR hedge an existing long IIPR stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying IIPR exposure being hedged.
- How does current IIPR implied volatility affect this long put?
- IIPR ATM IV is at 38.60% with IV rank near 5.60%, 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.