NVMI Long Put Strategy
NVMI (Nova Ltd.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Nova Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea, and internationally. Its product portfolio includes a set of metrology platforms for dimensional, films, and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical planarization, deposition, electrochemical plating, and advanced packaging. The company serves various sectors of the integrated circuit manufacturing industry, including logic, foundries, and memory manufacturers, as well as process equipment manufacturers. Nova Ltd. was formerly known as Nova Measuring Instruments Ltd. and changed its name to Nova Ltd. in July 2021. The company was incorporated in 1993 and is headquartered in Rehovot, Israel.
NVMI (Nova Ltd.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $16.01B, a trailing P/E of 58.53, a beta of 1.78 versus the broader market, a 52-week range of 179-550, average daily share volume of 353K, a public-listing history dating back to 2000, approximately 1K full-time employees. These structural characteristics shape how NVMI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.78 indicates NVMI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 58.53 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a long put on NVMI?
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 NVMI snapshot
As of May 15, 2026, spot at $515.84, ATM IV 58.00%, IV rank 21.58%, expected move 16.63%. The long put on NVMI 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 NVMI specifically: NVMI IV at 58.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a NVMI long put, with a market-implied 1-standard-deviation move of approximately 16.63% (roughly $85.77 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 NVMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVMI should anchor to the underlying notional of $515.84 per share and to the trader's directional view on NVMI stock.
NVMI long put setup
The NVMI 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 NVMI near $515.84, the first option leg uses a $520.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVMI 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 NVMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $520.00 | $37.25 |
NVMI long put risk and reward
- Net Premium / Debit
- -$3,725.00
- Max Profit (per contract)
- $48,274.00
- Max Loss (per contract)
- -$3,725.00
- Breakeven(s)
- $482.75
- Risk / Reward Ratio
- 12.959
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
NVMI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on NVMI. 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% | +$48,274.00 |
| $114.06 | -77.9% | +$36,868.60 |
| $228.12 | -55.8% | +$25,463.21 |
| $342.17 | -33.7% | +$14,057.81 |
| $456.23 | -11.6% | +$2,652.41 |
| $570.28 | +10.6% | -$3,725.00 |
| $684.33 | +32.7% | -$3,725.00 |
| $798.39 | +54.8% | -$3,725.00 |
| $912.44 | +76.9% | -$3,725.00 |
| $1,026.50 | +99.0% | -$3,725.00 |
When traders use long put on NVMI
Long puts on NVMI hedge an existing long NVMI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying NVMI exposure being hedged.
NVMI thesis for this long put
The market-implied 1-standard-deviation range for NVMI extends from approximately $430.07 on the downside to $601.61 on the upside. A NVMI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long NVMI position with one put per 100 shares held. Current NVMI IV rank near 21.58% 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 NVMI at 58.00%. As a Technology name, NVMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVMI-specific events.
NVMI 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. NVMI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVMI alongside the broader basket even when NVMI-specific fundamentals are unchanged. Long-premium structures like a long put on NVMI 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 NVMI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on NVMI?
- A long put on NVMI is the long put strategy applied to NVMI (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 NVMI stock trading near $515.84, the strikes shown on this page are snapped to the nearest listed NVMI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVMI 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 NVMI long put priced from the end-of-day chain at a 30-day expiry (ATM IV 58.00%), the computed maximum profit is $48,274.00 per contract and the computed maximum loss is -$3,725.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVMI long put?
- The breakeven for the NVMI long put priced on this page is roughly $482.75 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 NVMI market-implied 1-standard-deviation expected move is approximately 16.63%; 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 NVMI?
- Long puts on NVMI hedge an existing long NVMI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying NVMI exposure being hedged.
- How does current NVMI implied volatility affect this long put?
- NVMI ATM IV is at 58.00% with IV rank near 21.58%, 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.