OPEN Long Put Strategy
OPEN (Opendoor Technologies Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NASDAQ.
Opendoor Technologies Inc. operates a digital platform for residential real estate in the United States. The company's platform enables consumers to buy and sell a home online. It also provides title insurance and escrow services. Opendoor Technologies Inc. was incorporated in 2013 and is based in Tempe, Arizona.
OPEN (Opendoor Technologies Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $3.51B, a beta of 3.65 versus the broader market, a 52-week range of 0.508-10.87, average daily share volume of 39.9M, a public-listing history dating back to 2020, approximately 1K full-time employees. These structural characteristics shape how OPEN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.65 indicates OPEN 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 OPEN?
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 OPEN snapshot
As of May 15, 2026, spot at $4.38, ATM IV 76.68%, IV rank 1.75%, expected move 21.98%. The long put on OPEN 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 21-day expiry.
Why this long put structure on OPEN specifically: OPEN IV at 76.68% is on the cheap side of its 1-year range, which favors premium-buying structures like a OPEN long put, with a market-implied 1-standard-deviation move of approximately 21.98% (roughly $0.96 on the underlying). The 21-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OPEN expiries trade a higher absolute premium for lower per-day decay. Position sizing on OPEN should anchor to the underlying notional of $4.38 per share and to the trader's directional view on OPEN stock.
OPEN long put setup
The OPEN 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 OPEN near $4.38, the first option leg uses a $4.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OPEN chain at a 21-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 OPEN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $4.50 | $0.36 |
OPEN long put risk and reward
- Net Premium / Debit
- -$35.50
- Max Profit (per contract)
- $413.50
- Max Loss (per contract)
- -$35.50
- Breakeven(s)
- $4.15
- Risk / Reward Ratio
- 11.648
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
OPEN long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on OPEN. 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 | -99.8% | +$413.50 |
| $0.98 | -77.7% | +$316.77 |
| $1.94 | -55.6% | +$220.03 |
| $2.91 | -33.5% | +$123.30 |
| $3.88 | -11.4% | +$26.57 |
| $4.85 | +10.7% | -$35.50 |
| $5.81 | +32.7% | -$35.50 |
| $6.78 | +54.8% | -$35.50 |
| $7.75 | +76.9% | -$35.50 |
| $8.72 | +99.0% | -$35.50 |
When traders use long put on OPEN
Long puts on OPEN hedge an existing long OPEN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying OPEN exposure being hedged.
OPEN thesis for this long put
The market-implied 1-standard-deviation range for OPEN extends from approximately $3.42 on the downside to $5.34 on the upside. A OPEN long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long OPEN position with one put per 100 shares held. Current OPEN IV rank near 1.75% 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 OPEN at 76.68%. As a Real Estate name, OPEN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OPEN-specific events.
OPEN 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. OPEN positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OPEN alongside the broader basket even when OPEN-specific fundamentals are unchanged. Long-premium structures like a long put on OPEN 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 OPEN chain quotes before placing a trade.
Frequently asked questions
- What is a long put on OPEN?
- A long put on OPEN is the long put strategy applied to OPEN (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 OPEN stock trading near $4.38, the strikes shown on this page are snapped to the nearest listed OPEN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OPEN 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 OPEN long put priced from the end-of-day chain at a 30-day expiry (ATM IV 76.68%), the computed maximum profit is $413.50 per contract and the computed maximum loss is -$35.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OPEN long put?
- The breakeven for the OPEN long put priced on this page is roughly $4.15 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 OPEN market-implied 1-standard-deviation expected move is approximately 21.98%; 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 OPEN?
- Long puts on OPEN hedge an existing long OPEN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying OPEN exposure being hedged.
- How does current OPEN implied volatility affect this long put?
- OPEN ATM IV is at 76.68% with IV rank near 1.75%, 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.