How are RACE 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 RACE long put priced from the end-of-day chain at a 30-day expiry (ATM IV 32.45%), the computed maximum profit is $31,049.00 per contract and the computed maximum loss is -$950.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RACE long put?

The breakeven for the RACE long put priced on this page is roughly $310.50 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 RACE market-implied 1-standard-deviation expected move is approximately 9.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RACE implied volatility affect this long put?

RACE ATM IV is at 32.45% with IV rank near 32.78%, 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.

RACE Long Put Strategy

RACE (Ferrari N.V.), in the Consumer Cyclical sector, (Auto - Manufacturers industry), listed on NYSE.

Ferrari N.V., through its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hyper cars; one-off and track cars; and Icona cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars. In addition, the company licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods; Ferrari World, a theme park in Abu Dhabi, the United Arab Emirates; and Ferrari Land Portaventura, a theme park in Europe. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks, as well as owns and manages two museums in Maranello and Modena, Italy; and develops and sells a line of apparel and accessories through its monobrand stores. As of December 31, 2021, it had a total of 30 retail Ferrari stores, including 14 franchised stores and 16 owned stores.

RACE (Ferrari N.V.) trades in the Consumer Cyclical sector, specifically Auto - Manufacturers, with a market capitalization of approximately $58.79B, a trailing P/E of 31.33, a beta of 0.59 versus the broader market, a 52-week range of 312.51-519.1, average daily share volume of 639K, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how RACE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.59 indicates RACE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. RACE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on RACE?

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 RACE snapshot

As of May 15, 2026, spot at $321.91, ATM IV 32.45%, IV rank 32.78%, expected move 9.30%. The long put on RACE 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 28-day expiry.

Why this long put structure on RACE specifically: RACE IV at 32.45% 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 9.30% (roughly $29.95 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RACE expiries trade a higher absolute premium for lower per-day decay. Position sizing on RACE should anchor to the underlying notional of $321.91 per share and to the trader's directional view on RACE stock.

RACE long put setup

The RACE 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 RACE near $321.91, the first option leg uses a $320.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RACE chain at a 28-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 RACE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$320.00	$9.50

RACE long put risk and reward

Net Premium / Debit: -$950.00
Max Profit (per contract): $31,049.00
Max Loss (per contract): -$950.00
Breakeven(s): $310.50
Risk / Reward Ratio: 32.683

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

RACE long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on RACE. 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%	+$31,049.00
$71.18	-77.9%	+$23,931.50
$142.36	-55.8%	+$16,814.01
$213.53	-33.7%	+$9,696.51
$284.71	-11.6%	+$2,579.01
$355.88	+10.6%	-$950.00
$427.06	+32.7%	-$950.00
$498.23	+54.8%	-$950.00
$569.41	+76.9%	-$950.00
$640.58	+99.0%	-$950.00

When traders use long put on RACE

Long puts on RACE hedge an existing long RACE stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying RACE exposure being hedged.

RACE thesis for this long put

The market-implied 1-standard-deviation range for RACE extends from approximately $291.96 on the downside to $351.86 on the upside. A RACE long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long RACE position with one put per 100 shares held. Current RACE IV rank near 32.78% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on RACE should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, RACE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RACE-specific events.

RACE 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. RACE positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RACE alongside the broader basket even when RACE-specific fundamentals are unchanged. Long-premium structures like a long put on RACE 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 RACE chain quotes before placing a trade.

Frequently asked questions

What is a long put on RACE?: A long put on RACE is the long put strategy applied to RACE (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 RACE stock trading near $321.91, the strikes shown on this page are snapped to the nearest listed RACE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RACE 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 RACE long put priced from the end-of-day chain at a 30-day expiry (ATM IV 32.45%), the computed maximum profit is $31,049.00 per contract and the computed maximum loss is -$950.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RACE long put?: The breakeven for the RACE long put priced on this page is roughly $310.50 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 RACE market-implied 1-standard-deviation expected move is approximately 9.30%; 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 RACE?: Long puts on RACE hedge an existing long RACE stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying RACE exposure being hedged.
How does current RACE implied volatility affect this long put?: RACE ATM IV is at 32.45% with IV rank near 32.78%, 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.