LOAR Long Put Strategy
LOAR (Loar Holdings Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Loar Holdings, Inc. engages in the design, manufacture, and sale of niche aerospace and defense components for aircraft, aerospace and defense systems. The company was founded on August 21, 2017 and is headquartered in White Plains, NY.
LOAR (Loar Holdings Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $5.74B, a trailing P/E of 84.49, a beta of 0.56 versus the broader market, a 52-week range of 53.15-91.19, average daily share volume of 1.2M, a public-listing history dating back to 2024, approximately 2K full-time employees. These structural characteristics shape how LOAR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.56 indicates LOAR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 84.49 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 LOAR?
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 LOAR snapshot
As of May 14, 2026, spot at $62.17, ATM IV 49.90%, IV rank 22.62%, expected move 14.31%. The long put on LOAR 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 245-day expiry.
Why this long put structure on LOAR specifically: LOAR IV at 49.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a LOAR long put, with a market-implied 1-standard-deviation move of approximately 14.31% (roughly $8.89 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LOAR expiries trade a higher absolute premium for lower per-day decay. Position sizing on LOAR should anchor to the underlying notional of $62.17 per share and to the trader's directional view on LOAR stock.
LOAR long put setup
The LOAR 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 LOAR near $62.17, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LOAR chain at a 245-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 LOAR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $60.00 | $9.55 |
LOAR long put risk and reward
- Net Premium / Debit
- -$955.00
- Max Profit (per contract)
- $5,044.00
- Max Loss (per contract)
- -$955.00
- Breakeven(s)
- $50.45
- Risk / Reward Ratio
- 5.282
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
LOAR long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on LOAR. 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% | +$5,044.00 |
| $13.76 | -77.9% | +$3,669.50 |
| $27.50 | -55.8% | +$2,294.99 |
| $41.25 | -33.7% | +$920.49 |
| $54.99 | -11.5% | -$454.01 |
| $68.74 | +10.6% | -$955.00 |
| $82.48 | +32.7% | -$955.00 |
| $96.23 | +54.8% | -$955.00 |
| $109.97 | +76.9% | -$955.00 |
| $123.72 | +99.0% | -$955.00 |
When traders use long put on LOAR
Long puts on LOAR hedge an existing long LOAR stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LOAR exposure being hedged.
LOAR thesis for this long put
The market-implied 1-standard-deviation range for LOAR extends from approximately $53.28 on the downside to $71.06 on the upside. A LOAR long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long LOAR position with one put per 100 shares held. Current LOAR IV rank near 22.62% 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 LOAR at 49.90%. As a Industrials name, LOAR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LOAR-specific events.
LOAR 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. LOAR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LOAR alongside the broader basket even when LOAR-specific fundamentals are unchanged. Long-premium structures like a long put on LOAR 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 LOAR chain quotes before placing a trade.
Frequently asked questions
- What is a long put on LOAR?
- A long put on LOAR is the long put strategy applied to LOAR (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 LOAR stock trading near $62.17, the strikes shown on this page are snapped to the nearest listed LOAR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LOAR 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 LOAR long put priced from the end-of-day chain at a 30-day expiry (ATM IV 49.90%), the computed maximum profit is $5,044.00 per contract and the computed maximum loss is -$955.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LOAR long put?
- The breakeven for the LOAR long put priced on this page is roughly $50.45 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 LOAR market-implied 1-standard-deviation expected move is approximately 14.31%; 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 LOAR?
- Long puts on LOAR hedge an existing long LOAR stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LOAR exposure being hedged.
- How does current LOAR implied volatility affect this long put?
- LOAR ATM IV is at 49.90% with IV rank near 22.62%, 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.