NEXT Long Put Strategy
NEXT (NextDecade Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NASDAQ.
NextDecade Corporation engages in the development activities related to the liquefaction and sale of liquefied natural gas (LNG); and capture and storage of CO2 emissions. The company focuses on the development activities on the Rio Grande LNG terminal facility located in the Port of Brownsville in southern Texas. It also focuses on a carbon capture and storage project (CCS project) at the terminal, as well as on other CCS projects with third-party industrial source facilities. The company was founded in 2010 is based in Houston, Texas.
NEXT (NextDecade Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $2.26B, a beta of 1.65 versus the broader market, a 52-week range of 4.75-12.12, average daily share volume of 4.8M, a public-listing history dating back to 2015, approximately 237 full-time employees. These structural characteristics shape how NEXT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.65 indicates NEXT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a long put on NEXT?
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 NEXT snapshot
As of May 15, 2026, spot at $9.10, ATM IV 66.80%, IV rank 49.73%, expected move 19.15%. The long put on NEXT 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 NEXT specifically: NEXT IV at 66.80% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 19.15% (roughly $1.74 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 NEXT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEXT should anchor to the underlying notional of $9.10 per share and to the trader's directional view on NEXT stock.
NEXT long put setup
The NEXT 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 NEXT near $9.10, the first option leg uses a $9.10 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEXT 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 NEXT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $9.10 | N/A |
NEXT 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.
NEXT long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on NEXT. 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 NEXT
Long puts on NEXT hedge an existing long NEXT stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying NEXT exposure being hedged.
NEXT thesis for this long put
The market-implied 1-standard-deviation range for NEXT extends from approximately $7.36 on the downside to $10.84 on the upside. A NEXT long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long NEXT position with one put per 100 shares held. Current NEXT IV rank near 49.73% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on NEXT should anchor more to the directional view and the expected-move geometry. As a Energy name, NEXT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEXT-specific events.
NEXT 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. NEXT positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEXT alongside the broader basket even when NEXT-specific fundamentals are unchanged. Long-premium structures like a long put on NEXT 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 NEXT chain quotes before placing a trade.
Frequently asked questions
- What is a long put on NEXT?
- A long put on NEXT is the long put strategy applied to NEXT (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 NEXT stock trading near $9.10, the strikes shown on this page are snapped to the nearest listed NEXT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEXT 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 NEXT long put priced from the end-of-day chain at a 30-day expiry (ATM IV 66.80%), 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 NEXT long put?
- The breakeven for the NEXT 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 NEXT market-implied 1-standard-deviation expected move is approximately 19.15%; 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 NEXT?
- Long puts on NEXT hedge an existing long NEXT stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying NEXT exposure being hedged.
- How does current NEXT implied volatility affect this long put?
- NEXT ATM IV is at 66.80% with IV rank near 49.73%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.