How are LOW 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 LOW long put priced from the end-of-day chain at a 30-day expiry (ATM IV 35.25%), the computed maximum profit is $21,299.00 per contract and the computed maximum loss is -$1,200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LOW long put?

The breakeven for the LOW long put priced on this page is roughly $213.00 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 LOW market-implied 1-standard-deviation expected move is approximately 10.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LOW implied volatility affect this long put?

LOW ATM IV is at 35.25% with IV rank near 92.23%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

LOW Long Put Strategy

LOW (Lowe's Companies, Inc.), in the Consumer Cyclical sector, (Home Improvement industry), listed on NYSE.

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, decor, lighting, and electrical. It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. The company sells its national brand-name merchandise and private brand products to homeowners, renters, and professional customers. As of January 28, 2022, it operated 1,971 home improvement and hardware stores.

LOW (Lowe's Companies, Inc.) trades in the Consumer Cyclical sector, specifically Home Improvement, with a market capitalization of approximately $123.43B, a trailing P/E of 18.51, a beta of 0.90 versus the broader market, a 52-week range of 210.33-293.06, average daily share volume of 2.7M, a public-listing history dating back to 1980, approximately 300K full-time employees. These structural characteristics shape how LOW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.90 places LOW roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LOW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on LOW?

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 LOW snapshot

As of May 14, 2026, spot at $222.85, ATM IV 35.25%, IV rank 92.23%, expected move 10.10%. The long put on LOW 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 28-day expiry.

Why this long put structure on LOW specifically: LOW IV at 35.25% is rich versus its 1-year range, which makes a premium-buying LOW long put relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 10.10% (roughly $22.52 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 LOW expiries trade a higher absolute premium for lower per-day decay. Position sizing on LOW should anchor to the underlying notional of $222.85 per share and to the trader's directional view on LOW stock.

LOW long put setup

The LOW 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 LOW near $222.85, the first option leg uses a $225.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LOW 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 LOW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$225.00	$12.00

LOW long put risk and reward

Net Premium / Debit: -$1,200.00
Max Profit (per contract): $21,299.00
Max Loss (per contract): -$1,200.00
Breakeven(s): $213.00
Risk / Reward Ratio: 17.749

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

LOW long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on LOW. 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%	+$21,299.00
$49.28	-77.9%	+$16,371.77
$98.55	-55.8%	+$11,444.55
$147.83	-33.7%	+$6,517.32
$197.10	-11.6%	+$1,590.10
$246.37	+10.6%	-$1,200.00
$295.64	+32.7%	-$1,200.00
$344.92	+54.8%	-$1,200.00
$394.19	+76.9%	-$1,200.00
$443.46	+99.0%	-$1,200.00

When traders use long put on LOW

Long puts on LOW hedge an existing long LOW stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LOW exposure being hedged.

LOW thesis for this long put

The market-implied 1-standard-deviation range for LOW extends from approximately $200.33 on the downside to $245.37 on the upside. A LOW long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long LOW position with one put per 100 shares held. Current LOW IV rank near 92.23% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on LOW at 35.25%. As a Consumer Cyclical name, LOW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LOW-specific events.

LOW 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. LOW positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LOW alongside the broader basket even when LOW-specific fundamentals are unchanged. Long-premium structures like a long put on LOW 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 LOW chain quotes before placing a trade.

Frequently asked questions

What is a long put on LOW?: A long put on LOW is the long put strategy applied to LOW (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 LOW stock trading near $222.85, the strikes shown on this page are snapped to the nearest listed LOW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LOW 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 LOW long put priced from the end-of-day chain at a 30-day expiry (ATM IV 35.25%), the computed maximum profit is $21,299.00 per contract and the computed maximum loss is -$1,200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LOW long put?: The breakeven for the LOW long put priced on this page is roughly $213.00 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 LOW market-implied 1-standard-deviation expected move is approximately 10.10%; 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 LOW?: Long puts on LOW hedge an existing long LOW stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LOW exposure being hedged.
How does current LOW implied volatility affect this long put?: LOW ATM IV is at 35.25% with IV rank near 92.23%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.