NBIX Long Put Strategy
NBIX (Neurocrine Biosciences, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Neurocrine Biosciences, Inc. is a pharmaceutical firm dedicated to the creation, advancement, and commercialization of medicines addressing a spectrum of neurological, endocrine, and psychiatric conditions. Its current therapeutic pipeline and marketed products target disorders such as tardive dyskinesia, Parkinson's disease, endometriosis, and uterine fibroids, alongside numerous experimental compounds in various clinical stages. The company's primary commercial asset is INGREZZA, a VMAT2 inhibitor indicated for the management of tardive dyskinesia. Other available treatments include ONGENTYS, which serves as an auxiliary therapy for individuals with Parkinson's disease who are also receiving levodopa/DOPA decarboxylase inhibitors; ORILISSA, prescribed for the alleviation of moderate to severe pain linked with endometriosis in women; and ORIAHNN, an oral, non-surgical option for pre-menopausal women experiencing significant menstrual bleeding associated with uterine fibroids. Furthermore, Neurocrine is actively progressing a number of drug candidates through clinical development. These include NBI-921352 for treating pediatric patients and adult focal epilepsy; NBI-827104, designed to address rare pediatric epilepsy and essential tremor; NBI-1065845 for major depressive disorder; NBI-1065846 specifically for anhedonia within major depressive disorder; and NBI-118568 for the treatment of schizophrenia.
NBIX (Neurocrine Biosciences, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $16.94B, a trailing P/E of 25.33, a beta of 0.40 versus the broader market, a 52-week range of 122.14-169.57, average daily share volume of 1.2M, a public-listing history dating back to 1996, approximately 2K full-time employees. These structural characteristics shape how NBIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.40 indicates NBIX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a long put on NBIX?
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 NBIX snapshot
As of June 30, 2026, spot at $169.20, ATM IV 26.80%, IV rank 10.75%, expected move 7.68%. The long put on NBIX 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 17-day expiry.
Why this long put structure on NBIX specifically: NBIX IV at 26.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a NBIX long put, with a market-implied 1-standard-deviation move of approximately 7.68% (roughly $13.00 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NBIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on NBIX should anchor to the underlying notional of $169.20 per share and to the trader's directional view on NBIX stock.
NBIX long put setup
The NBIX 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 NBIX near $169.20, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NBIX chain at a 17-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 NBIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $170.00 | $4.15 |
NBIX long put risk and reward
- Net Premium / Debit
- -$415.00
- Max Profit (per contract)
- $16,584.00
- Max Loss (per contract)
- -$415.00
- Breakeven(s)
- $165.85
- Risk / Reward Ratio
- 39.961
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
NBIX long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on NBIX. 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% | +$16,584.00 |
| $37.42 | -77.9% | +$12,843.01 |
| $74.83 | -55.8% | +$9,102.01 |
| $112.24 | -33.7% | +$5,361.02 |
| $149.65 | -11.6% | +$1,620.02 |
| $187.06 | +10.6% | -$415.00 |
| $224.47 | +32.7% | -$415.00 |
| $261.88 | +54.8% | -$415.00 |
| $299.29 | +76.9% | -$415.00 |
| $336.70 | +99.0% | -$415.00 |
When traders use long put on NBIX
Long puts on NBIX hedge an existing long NBIX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying NBIX exposure being hedged.
NBIX thesis for this long put
The market-implied 1-standard-deviation range for NBIX extends from approximately $156.20 on the downside to $182.20 on the upside. A NBIX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long NBIX position with one put per 100 shares held. Current NBIX IV rank near 10.75% 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 NBIX at 26.80%. As a Healthcare name, NBIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NBIX-specific events.
NBIX 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. NBIX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NBIX alongside the broader basket even when NBIX-specific fundamentals are unchanged. Long-premium structures like a long put on NBIX 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 NBIX chain quotes before placing a trade.
Frequently asked questions
- What is a long put on NBIX?
- A long put on NBIX is the long put strategy applied to NBIX (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 NBIX stock trading near $169.20, the strikes shown on this page are snapped to the nearest listed NBIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NBIX 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 NBIX long put priced from the end-of-day chain at a 30-day expiry (ATM IV 26.80%), the computed maximum profit is $16,584.00 per contract and the computed maximum loss is -$415.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NBIX long put?
- The breakeven for the NBIX long put priced on this page is roughly $165.85 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 NBIX market-implied 1-standard-deviation expected move is approximately 7.68%; 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 NBIX?
- Long puts on NBIX hedge an existing long NBIX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying NBIX exposure being hedged.
- How does current NBIX implied volatility affect this long put?
- NBIX ATM IV is at 26.80% with IV rank near 10.75%, 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.