LHX Long Put Strategy
LHX (L3Harris Technologies, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
L3Harris Technologies, Inc. is a prominent technology firm specializing in aerospace and defense, delivering vital, high-stakes solutions to governmental and commercial clients across the globe. Its diverse operations are organized into several key segments: The Integrated Mission Systems division is responsible for providing versatile intelligence, surveillance, and reconnaissance (ISR) platforms, alongside various communication technologies. This unit also offers comprehensive support for fleet management, as well as the development, modification, and routine maintenance of sensors for ISR and airborne operations. Furthermore, it develops and integrates specialized mission systems tailored for naval vessels and maritime operations, including sophisticated signals and multi-intelligence platforms, autonomous surface and undersea vehicles, and advanced power and ship control electronics. Cutting-edge electro-optical and infrared technologies are also part of its offerings. The Space and Airborne Systems segment is dedicated to providing sophisticated space payloads, advanced sensor technologies, and complete mission solutions for space-based operations.
LHX (L3Harris Technologies, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $54.34B, a trailing P/E of 29.10, a beta of 0.75 versus the broader market, a 52-week range of 262.68-379.23, average daily share volume of 1.4M, a public-listing history dating back to 1981, approximately 45K full-time employees. These structural characteristics shape how LHX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.75 places LHX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LHX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on LHX?
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.
LHX snapshot
As of August 14, 2026, spot at $291.47, ATM IV 24.63%, IV rank 33.94%, expected move 7.06%. The long put on LHX below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this long put structure on LHX specifically: LHX IV at 24.63% 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 7.06% (roughly $20.58 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LHX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LHX should anchor to the underlying notional of $291.47 per share and to the trader's directional view on LHX stock.
LHX long put setup
The LHX long put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LHX at $291.47 on that close, the first option leg uses a $290.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LHX chain at a 28-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 LHX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $290.00 | $7.20 |
LHX long put risk and reward
- Net Premium / Debit
- -$720.00
- Max Profit (per contract)
- $28,279.00
- Max Loss (per contract)
- -$720.00
- Breakeven(s)
- $282.80
- Risk / Reward Ratio
- 39.276
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
LHX long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on LHX. 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% | +$28,279.00 |
| $64.45 | -77.9% | +$21,834.55 |
| $128.90 | -55.8% | +$15,390.10 |
| $193.34 | -33.7% | +$8,945.64 |
| $257.79 | -11.6% | +$2,501.19 |
| $322.23 | +10.6% | -$720.00 |
| $386.68 | +32.7% | -$720.00 |
| $451.12 | +54.8% | -$720.00 |
| $515.57 | +76.9% | -$720.00 |
| $580.01 | +99.0% | -$720.00 |
When traders use long put on LHX
Long puts on LHX hedge an existing long LHX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LHX exposure being hedged.
LHX thesis for this long put
The market-implied 1-standard-deviation range for LHX extends from approximately $270.89 on the downside to $312.05 on the upside. A LHX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long LHX position with one put per 100 shares held. Current LHX IV rank near 33.94% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on LHX should anchor more to the directional view and the expected-move geometry. As a Industrials name, LHX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LHX-specific events.
LHX 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. LHX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LHX alongside the broader basket even when LHX-specific fundamentals are unchanged. Long-premium structures like a long put on LHX 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 LHX chain quotes before placing a trade.
Frequently asked questions
- What is a long put on LHX?
- A long put on LHX is the long put strategy applied to LHX (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 LHX stock at $291.47 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LHX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LHX 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 LHX long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.63%), the computed maximum profit is $28,279.00 per contract and the computed maximum loss is -$720.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LHX long put?
- The breakeven for the LHX long put priced on this page is roughly $282.80 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The LHX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.06%; 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 LHX?
- Long puts on LHX hedge an existing long LHX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LHX exposure being hedged.
- How does current LHX implied volatility affect this long put?
- LHX ATM IV is at 24.63% with IV rank near 33.94%, 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.