NMG Long Put Strategy
NMG (Nouveau Monde Graphite Inc.), in the Basic Materials sector, (Industrial Materials industry), listed on NYSE.
Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Canada. It primarily explores for graphite. The company's flagship project is the Matawinie property that includes 392 mining claims covering an area of 21,750 hectares situated to the north of Montreal, Quebec. It also engages in the real estate and trading businesses. The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-des-Saints, Canada.
NMG (Nouveau Monde Graphite Inc.) trades in the Basic Materials sector, specifically Industrial Materials, with a market capitalization of approximately $312.0M, a beta of 0.90 versus the broader market, a 52-week range of 1.6-6.06, average daily share volume of 1.1M, a public-listing history dating back to 2021, approximately 113 full-time employees. These structural characteristics shape how NMG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places NMG 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 NMG?
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 NMG snapshot
As of May 15, 2026, spot at $1.90, ATM IV 267.30%, IV rank 74.93%, expected move 76.63%. The long put on NMG 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 NMG specifically: NMG IV at 267.30% is rich versus its 1-year range, which makes a premium-buying NMG long put relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 76.63% (roughly $1.46 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 NMG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NMG should anchor to the underlying notional of $1.90 per share and to the trader's directional view on NMG stock.
NMG long put setup
The NMG 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 NMG near $1.90, the first option leg uses a $1.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NMG 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 NMG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $1.90 | N/A |
NMG 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.
NMG long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on NMG. 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 NMG
Long puts on NMG hedge an existing long NMG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying NMG exposure being hedged.
NMG thesis for this long put
The market-implied 1-standard-deviation range for NMG extends from approximately $0.44 on the downside to $3.36 on the upside. A NMG long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long NMG position with one put per 100 shares held. Current NMG IV rank near 74.93% 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 NMG at 267.30%. As a Basic Materials name, NMG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NMG-specific events.
NMG 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. NMG positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NMG alongside the broader basket even when NMG-specific fundamentals are unchanged. Long-premium structures like a long put on NMG 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 NMG chain quotes before placing a trade.
Frequently asked questions
- What is a long put on NMG?
- A long put on NMG is the long put strategy applied to NMG (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 NMG stock trading near $1.90, the strikes shown on this page are snapped to the nearest listed NMG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NMG 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 NMG long put priced from the end-of-day chain at a 30-day expiry (ATM IV 267.30%), 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 NMG long put?
- The breakeven for the NMG 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 NMG market-implied 1-standard-deviation expected move is approximately 76.63%; 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 NMG?
- Long puts on NMG hedge an existing long NMG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying NMG exposure being hedged.
- How does current NMG implied volatility affect this long put?
- NMG ATM IV is at 267.30% with IV rank near 74.93%, 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.