KRC Long Put Strategy
KRC (Kilroy Realty Corporation), in the Real Estate sector, (REIT - Office industry), listed on NYSE.
Kilroy Realty Corporation (NYSE: KRC, the company, KRC) is a leading West Coast landlord and developer, with a major presence in San Diego, Greater Los Angeles, the San Francisco Bay Area, and the Pacific Northwest. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity, productivity and employee retention for some of the world's leading technology, entertainment, life science and business services companies. KRC is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office and mixed-use projects. As of September 30, 2020, KRC's stabilized portfolio totaled approximately 14.3 million square feet of primarily office and life science space that was 92.2% occupied and 95.5% leased. The company also had 808 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 85.0% and 37.5%, respectively.
KRC (Kilroy Realty Corporation) trades in the Real Estate sector, specifically REIT - Office, with a market capitalization of approximately $4.00B, a trailing P/E of 18.60, a beta of 1.16 versus the broader market, a 52-week range of 27.36-45.03, average daily share volume of 2.2M, a public-listing history dating back to 1997, approximately 229 full-time employees. These structural characteristics shape how KRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.16 places KRC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. KRC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on KRC?
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 KRC snapshot
As of May 15, 2026, spot at $34.38, ATM IV 36.50%, IV rank 6.31%, expected move 10.46%. The long put on KRC 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 KRC specifically: KRC IV at 36.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a KRC long put, with a market-implied 1-standard-deviation move of approximately 10.46% (roughly $3.60 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 KRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRC should anchor to the underlying notional of $34.38 per share and to the trader's directional view on KRC stock.
KRC long put setup
The KRC 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 KRC near $34.38, the first option leg uses a $34.38 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRC 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 KRC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $34.38 | N/A |
KRC 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.
KRC long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on KRC. 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 KRC
Long puts on KRC hedge an existing long KRC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying KRC exposure being hedged.
KRC thesis for this long put
The market-implied 1-standard-deviation range for KRC extends from approximately $30.78 on the downside to $37.98 on the upside. A KRC long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long KRC position with one put per 100 shares held. Current KRC IV rank near 6.31% 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 KRC at 36.50%. As a Real Estate name, KRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRC-specific events.
KRC 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. KRC positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRC alongside the broader basket even when KRC-specific fundamentals are unchanged. Long-premium structures like a long put on KRC 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 KRC chain quotes before placing a trade.
Frequently asked questions
- What is a long put on KRC?
- A long put on KRC is the long put strategy applied to KRC (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 KRC stock trading near $34.38, the strikes shown on this page are snapped to the nearest listed KRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KRC 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 KRC long put priced from the end-of-day chain at a 30-day expiry (ATM IV 36.50%), 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 KRC long put?
- The breakeven for the KRC 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 KRC market-implied 1-standard-deviation expected move is approximately 10.46%; 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 KRC?
- Long puts on KRC hedge an existing long KRC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying KRC exposure being hedged.
- How does current KRC implied volatility affect this long put?
- KRC ATM IV is at 36.50% with IV rank near 6.31%, 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.