LEA Long Put Strategy
LEA (Lear Corporation), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company's E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment's products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity.
LEA (Lear Corporation) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $6.89B, a trailing P/E of 13.29, a beta of 1.22 versus the broader market, a 52-week range of 86.14-142.84, average daily share volume of 568K, a public-listing history dating back to 2009, approximately 174K full-time employees. These structural characteristics shape how LEA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places LEA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LEA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on LEA?
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 LEA snapshot
As of May 15, 2026, spot at $133.50, ATM IV 34.00%, IV rank 43.05%, expected move 9.75%. The long put on LEA 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 LEA specifically: LEA IV at 34.00% 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 9.75% (roughly $13.01 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 LEA expiries trade a higher absolute premium for lower per-day decay. Position sizing on LEA should anchor to the underlying notional of $133.50 per share and to the trader's directional view on LEA stock.
LEA long put setup
The LEA 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 LEA near $133.50, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LEA 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 LEA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $135.00 | $6.25 |
LEA long put risk and reward
- Net Premium / Debit
- -$625.00
- Max Profit (per contract)
- $12,874.00
- Max Loss (per contract)
- -$625.00
- Breakeven(s)
- $128.75
- Risk / Reward Ratio
- 20.598
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
LEA long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on LEA. 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% | +$12,874.00 |
| $29.53 | -77.9% | +$9,922.35 |
| $59.04 | -55.8% | +$6,970.70 |
| $88.56 | -33.7% | +$4,019.06 |
| $118.08 | -11.6% | +$1,067.41 |
| $147.59 | +10.6% | -$625.00 |
| $177.11 | +32.7% | -$625.00 |
| $206.63 | +54.8% | -$625.00 |
| $236.14 | +76.9% | -$625.00 |
| $265.66 | +99.0% | -$625.00 |
When traders use long put on LEA
Long puts on LEA hedge an existing long LEA stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LEA exposure being hedged.
LEA thesis for this long put
The market-implied 1-standard-deviation range for LEA extends from approximately $120.49 on the downside to $146.51 on the upside. A LEA long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long LEA position with one put per 100 shares held. Current LEA IV rank near 43.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on LEA should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, LEA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LEA-specific events.
LEA 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. LEA positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LEA alongside the broader basket even when LEA-specific fundamentals are unchanged. Long-premium structures like a long put on LEA 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 LEA chain quotes before placing a trade.
Frequently asked questions
- What is a long put on LEA?
- A long put on LEA is the long put strategy applied to LEA (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 LEA stock trading near $133.50, the strikes shown on this page are snapped to the nearest listed LEA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LEA 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 LEA long put priced from the end-of-day chain at a 30-day expiry (ATM IV 34.00%), the computed maximum profit is $12,874.00 per contract and the computed maximum loss is -$625.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LEA long put?
- The breakeven for the LEA long put priced on this page is roughly $128.75 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 LEA market-implied 1-standard-deviation expected move is approximately 9.75%; 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 LEA?
- Long puts on LEA hedge an existing long LEA stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LEA exposure being hedged.
- How does current LEA implied volatility affect this long put?
- LEA ATM IV is at 34.00% with IV rank near 43.05%, 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.