How are MHK 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 MHK long put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.50%), the computed maximum profit is $11,274.00 per contract and the computed maximum loss is -$725.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MHK long put?

The breakeven for the MHK long put priced on this page is roughly $112.75 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 MHK market-implied 1-standard-deviation expected move is approximately 11.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MHK implied volatility affect this long put?

MHK ATM IV is at 38.50% with IV rank near 29.65%, 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.

MHK Long Put Strategy

MHK (Mohawk Industries, Inc.), in the Consumer Cyclical sector, (Furnishings, Fixtures & Appliances industry), listed on NYSE.

Mohawk Industries, Inc. is a global leader specializing in the manufacturing, sourcing, distribution, and marketing of diverse flooring solutions. The company serves both residential and commercial clients, addressing needs for new construction and renovation projects across the United States, Europe, Russia, and other international territories. Its operations are structured into three primary segments: 1. Global Ceramic: This division offers a wide range of ceramic, porcelain, and natural stone tiles, and also procures, markets, and distributes other related tile products. Key brands within this segment include American Olean, Daltile, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, and Ragno. 2. Flooring North America (Flooring NA): This segment presents an extensive collection of floor covering products, available in various colors, textures, and patterns.

MHK (Mohawk Industries, Inc.) trades in the Consumer Cyclical sector, specifically Furnishings, Fixtures & Appliances, with a market capitalization of approximately $7.30B, a trailing P/E of 17.74, a beta of 1.21 versus the broader market, a 52-week range of 92.99-143.13, average daily share volume of 889K, a public-listing history dating back to 1992, approximately 42K full-time employees. These structural characteristics shape how MHK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.21 places MHK 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 MHK?

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 MHK snapshot

As of June 30, 2026, spot at $121.40, ATM IV 38.50%, IV rank 29.65%, expected move 11.04%. The long put on MHK 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 52-day expiry.

Why this long put structure on MHK specifically: MHK IV at 38.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a MHK long put, with a market-implied 1-standard-deviation move of approximately 11.04% (roughly $13.40 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MHK expiries trade a higher absolute premium for lower per-day decay. Position sizing on MHK should anchor to the underlying notional of $121.40 per share and to the trader's directional view on MHK stock.

MHK long put setup

The MHK 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 MHK near $121.40, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MHK chain at a 52-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 MHK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$120.00	$7.25

MHK long put risk and reward

Net Premium / Debit: -$725.00
Max Profit (per contract): $11,274.00
Max Loss (per contract): -$725.00
Breakeven(s): $112.75
Risk / Reward Ratio: 15.550

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

MHK long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on MHK. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$11,274.00
$26.85	-77.9%	+$8,589.89
$53.69	-55.8%	+$5,905.78
$80.53	-33.7%	+$3,221.67
$107.37	-11.6%	+$537.56
$134.22	+10.6%	-$725.00
$161.06	+32.7%	-$725.00
$187.90	+54.8%	-$725.00
$214.74	+76.9%	-$725.00
$241.58	+99.0%	-$725.00

When traders use long put on MHK

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

MHK thesis for this long put

The market-implied 1-standard-deviation range for MHK extends from approximately $108.00 on the downside to $134.80 on the upside. A MHK long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long MHK position with one put per 100 shares held. Current MHK IV rank near 29.65% 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 MHK at 38.50%. As a Consumer Cyclical name, MHK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MHK-specific events.

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

Frequently asked questions

What is a long put on MHK?: A long put on MHK is the long put strategy applied to MHK (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 MHK stock trading near $121.40, the strikes shown on this page are snapped to the nearest listed MHK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MHK 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 MHK long put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.50%), the computed maximum profit is $11,274.00 per contract and the computed maximum loss is -$725.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MHK long put?: The breakeven for the MHK long put priced on this page is roughly $112.75 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 MHK market-implied 1-standard-deviation expected move is approximately 11.04%; 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 MHK?: Long puts on MHK hedge an existing long MHK stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying MHK exposure being hedged.
How does current MHK implied volatility affect this long put?: MHK ATM IV is at 38.50% with IV rank near 29.65%, 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.