KN Long Put Strategy
KN (Knowles Corporation), in the Technology sector, (Communication Equipment industry), listed on NYSE.
Knowles Corporation offers micro-acoustic microphones and balanced armature speakers, audio solutions, high performance capacitors, and radio frequency products for the consumer electronics, medtech, defense, electric vehicle, industrial, and communications markets. It operates in two segments, Audio and Precision Devices (PD). The Audio segment designs and manufactures audio products, including microphones, balanced armature speakers, and audio processors used in applications that serve the mobile, hearing health, True Wireless Stereo, Internet of Things, and computing markets. The PD segment is involved in the design and delivery of high-performance capacitor products and RF solutions that are used in applications, such as power supplies and medical implants, satellite communications, and radar systems, as well as for communications equipment. The company sells its products directly to original equipment manufacturers and to their contract manufacturers and suppliers, as well as through distributors. It has operations in Asia, the United States, Europe, other Americas, and internationally.
KN (Knowles Corporation) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $3.13B, a trailing P/E of 55.95, a beta of 1.56 versus the broader market, a 52-week range of 16.09-37.08, average daily share volume of 735K, a public-listing history dating back to 2014, approximately 6K full-time employees. These structural characteristics shape how KN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.56 indicates KN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 55.95 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 KN?
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 KN snapshot
As of May 15, 2026, spot at $35.15, ATM IV 39.30%, IV rank 5.07%, expected move 11.27%. The long put on KN 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 KN specifically: KN IV at 39.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a KN long put, with a market-implied 1-standard-deviation move of approximately 11.27% (roughly $3.96 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 KN expiries trade a higher absolute premium for lower per-day decay. Position sizing on KN should anchor to the underlying notional of $35.15 per share and to the trader's directional view on KN stock.
KN long put setup
The KN 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 KN near $35.15, the first option leg uses a $35.15 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KN 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 KN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $35.15 | N/A |
KN 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.
KN long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on KN. 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 KN
Long puts on KN hedge an existing long KN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying KN exposure being hedged.
KN thesis for this long put
The market-implied 1-standard-deviation range for KN extends from approximately $31.19 on the downside to $39.11 on the upside. A KN long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long KN position with one put per 100 shares held. Current KN IV rank near 5.07% 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 KN at 39.30%. As a Technology name, KN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KN-specific events.
KN 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. KN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KN alongside the broader basket even when KN-specific fundamentals are unchanged. Long-premium structures like a long put on KN 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 KN chain quotes before placing a trade.
Frequently asked questions
- What is a long put on KN?
- A long put on KN is the long put strategy applied to KN (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 KN stock trading near $35.15, the strikes shown on this page are snapped to the nearest listed KN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KN 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 KN long put priced from the end-of-day chain at a 30-day expiry (ATM IV 39.30%), 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 KN long put?
- The breakeven for the KN 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 KN market-implied 1-standard-deviation expected move is approximately 11.27%; 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 KN?
- Long puts on KN hedge an existing long KN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying KN exposure being hedged.
- How does current KN implied volatility affect this long put?
- KN ATM IV is at 39.30% with IV rank near 5.07%, 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.