IR Long Put Strategy
IR (Ingersoll Rand Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Ingersoll Rand Inc. provides various mission-critical air, fluid, energy, specialty vehicle and medical technologies in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services various air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services. The Precision and Science Technologies segment designs, manufactures, and markets a range of specialized positive displacement pumps, fluid management systems, accessories and aftermarket parts for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management and flow control in specialized or critical applications. The company's products are used in medical, laboratory, industrial manufacturing, water and wastewater, chemical processing, precision irrigation, energy, food and beverage, agriculture, and vacuum and automated liquid handling end-markets, as well as various manufacturing and industrial facilities applications. It sells through an integrated network of direct sales representatives and independent distributors under the Ingersoll Rand, Gardner Denver, Club Car, CompAir, Nash, Elmo Rietschle, Robuschi, Thomas, Milton Roy, Seepex, ARO, Emco Wheaton, Runtech Systems, Air Dimensions, Albin, Dosatron, Haskel, LMI, Maximus, MP, Oberdorfer, Welch, Williams, Zinnser Analytic, and YZ brands.
IR (Ingersoll Rand Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $27.94B, a trailing P/E of 47.68, a beta of 1.25 versus the broader market, a 52-week range of 70.97-100.96, average daily share volume of 3.4M, a public-listing history dating back to 2017, approximately 21K full-time employees. These structural characteristics shape how IR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.25 places IR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 47.68 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. IR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on IR?
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 IR snapshot
As of May 15, 2026, spot at $70.43, ATM IV 34.80%, IV rank 52.76%, expected move 9.98%. The long put on IR 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 IR specifically: IR IV at 34.80% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 9.98% (roughly $7.03 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 IR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IR should anchor to the underlying notional of $70.43 per share and to the trader's directional view on IR stock.
IR long put setup
The IR 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 IR near $70.43, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IR 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 IR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $70.00 | $2.63 |
IR long put risk and reward
- Net Premium / Debit
- -$262.50
- Max Profit (per contract)
- $6,736.50
- Max Loss (per contract)
- -$262.50
- Breakeven(s)
- $67.38
- Risk / Reward Ratio
- 25.663
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
IR long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on IR. 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% | +$6,736.50 |
| $15.58 | -77.9% | +$5,179.36 |
| $31.15 | -55.8% | +$3,622.23 |
| $46.72 | -33.7% | +$2,065.09 |
| $62.30 | -11.5% | +$507.96 |
| $77.87 | +10.6% | -$262.50 |
| $93.44 | +32.7% | -$262.50 |
| $109.01 | +54.8% | -$262.50 |
| $124.58 | +76.9% | -$262.50 |
| $140.15 | +99.0% | -$262.50 |
When traders use long put on IR
Long puts on IR hedge an existing long IR stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying IR exposure being hedged.
IR thesis for this long put
The market-implied 1-standard-deviation range for IR extends from approximately $63.40 on the downside to $77.46 on the upside. A IR long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long IR position with one put per 100 shares held. Current IR IV rank near 52.76% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on IR should anchor more to the directional view and the expected-move geometry. As a Industrials name, IR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IR-specific events.
IR 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. IR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IR alongside the broader basket even when IR-specific fundamentals are unchanged. Long-premium structures like a long put on IR 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 IR chain quotes before placing a trade.
Frequently asked questions
- What is a long put on IR?
- A long put on IR is the long put strategy applied to IR (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 IR stock trading near $70.43, the strikes shown on this page are snapped to the nearest listed IR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IR 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 IR long put priced from the end-of-day chain at a 30-day expiry (ATM IV 34.80%), the computed maximum profit is $6,736.50 per contract and the computed maximum loss is -$262.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IR long put?
- The breakeven for the IR long put priced on this page is roughly $67.38 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 IR market-implied 1-standard-deviation expected move is approximately 9.98%; 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 IR?
- Long puts on IR hedge an existing long IR stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying IR exposure being hedged.
- How does current IR implied volatility affect this long put?
- IR ATM IV is at 34.80% with IV rank near 52.76%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.