LQDT Long Put Strategy
LQDT (Liquidity Services, Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NASDAQ.
Liquidity Services, Inc. provides e-commerce marketplaces, self-directed auction listing tools, and value-added services. It operates through four segments: Retail Supply Chain Group, Capital Assets Group, GovDeals, and Machinio. The company's marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and retail capital assets; GovDeals marketplace, which provides self-directed service solutions in which sellers list their own assets that enables local and state government entities, and commercial businesses located in the United States and Canada to sell surplus and salvage assets; and AllSurplus, a centralized marketplace that connects global buyer base with assets from across the network of marketplaces in a single destination. It also provides marketplace for corporations located in the North America, Europe, Australia, Asia, and Africa to sell manufacturing surplus, salvage capital assets, and scrap material, as well as offers a suite of services, including surplus management, asset valuation, asset sales, marketing, returns management, asset recovery, and ecommerce services. In addition, the company operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, and agriculture sectors. It offers products from industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet and transportation equipment, and specialty equipment.
LQDT (Liquidity Services, Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $1.03B, a trailing P/E of 33.83, a beta of 1.10 versus the broader market, a 52-week range of 21.67-38.83, average daily share volume of 170K, a public-listing history dating back to 2006, approximately 781 full-time employees. These structural characteristics shape how LQDT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.10 places LQDT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a long put on LQDT?
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 LQDT snapshot
As of May 15, 2026, spot at $33.14, ATM IV 40.00%, IV rank 22.02%, expected move 11.47%. The long put on LQDT 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 LQDT specifically: LQDT IV at 40.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a LQDT long put, with a market-implied 1-standard-deviation move of approximately 11.47% (roughly $3.80 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 LQDT expiries trade a higher absolute premium for lower per-day decay. Position sizing on LQDT should anchor to the underlying notional of $33.14 per share and to the trader's directional view on LQDT stock.
LQDT long put setup
The LQDT 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 LQDT near $33.14, the first option leg uses a $33.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LQDT 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 LQDT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $33.14 | N/A |
LQDT 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.
LQDT long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on LQDT. 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 LQDT
Long puts on LQDT hedge an existing long LQDT stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LQDT exposure being hedged.
LQDT thesis for this long put
The market-implied 1-standard-deviation range for LQDT extends from approximately $29.34 on the downside to $36.94 on the upside. A LQDT long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long LQDT position with one put per 100 shares held. Current LQDT IV rank near 22.02% 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 LQDT at 40.00%. As a Consumer Cyclical name, LQDT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LQDT-specific events.
LQDT 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. LQDT positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LQDT alongside the broader basket even when LQDT-specific fundamentals are unchanged. Long-premium structures like a long put on LQDT 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 LQDT chain quotes before placing a trade.
Frequently asked questions
- What is a long put on LQDT?
- A long put on LQDT is the long put strategy applied to LQDT (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 LQDT stock trading near $33.14, the strikes shown on this page are snapped to the nearest listed LQDT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LQDT 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 LQDT long put priced from the end-of-day chain at a 30-day expiry (ATM IV 40.00%), 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 LQDT long put?
- The breakeven for the LQDT 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 LQDT market-implied 1-standard-deviation expected move is approximately 11.47%; 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 LQDT?
- Long puts on LQDT hedge an existing long LQDT stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying LQDT exposure being hedged.
- How does current LQDT implied volatility affect this long put?
- LQDT ATM IV is at 40.00% with IV rank near 22.02%, 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.