How are SAH 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 SAH long put priced from the end-of-day chain at a 30-day expiry (ATM IV 88.20%), the computed maximum profit is $7,684.00 per contract and the computed maximum loss is -$815.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SAH long put?

The breakeven for the SAH long put priced on this page is roughly $76.85 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 SAH market-implied 1-standard-deviation expected move is approximately 25.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SAH implied volatility affect this long put?

SAH ATM IV is at 88.20% with IV rank near 20.03%, 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.

SAH Long Put Strategy

SAH (Sonic Automotive, Inc.), in the Consumer Cyclical sector, (Auto - Dealerships industry), listed on NYSE.

Sonic Automotive, Inc. operates as a significant automotive retailer across the United States, structuring its diverse business activities into two primary divisions: Franchised Dealerships and EchoPark. The Franchised Dealerships segment is responsible for selling both new and pre-owned cars and light trucks, in addition to supplying replacement parts. This division also provides a full range of services, including routine vehicle maintenance, authorized manufacturer warranty repairs, and specialized paint and collision repair. Moreover, it assists customers in securing supplementary products such as extended warranties, service contracts, financing options, insurance, and other aftermarket offerings. The EchoPark segment specializes in the retail of used cars and light trucks. Operating from its dedicated pre-owned vehicle specialty stores, this division also helps clients with the purchase of finance and insurance products.

SAH (Sonic Automotive, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Dealerships, with a market capitalization of approximately $2.87B, a trailing P/E of 26.07, a beta of 0.90 versus the broader market, a 52-week range of 54.11-89.62, average daily share volume of 267K, a public-listing history dating back to 1997, approximately 11K full-time employees. These structural characteristics shape how SAH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.90 places SAH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SAH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on SAH?

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 SAH snapshot

As of June 30, 2026, spot at $84.31, ATM IV 88.20%, IV rank 20.03%, expected move 25.29%. The long put on SAH 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 143-day expiry.

Why this long put structure on SAH specifically: SAH IV at 88.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SAH long put, with a market-implied 1-standard-deviation move of approximately 25.29% (roughly $21.32 on the underlying). The 143-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SAH expiries trade a higher absolute premium for lower per-day decay. Position sizing on SAH should anchor to the underlying notional of $84.31 per share and to the trader's directional view on SAH stock.

SAH long put setup

The SAH 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 SAH near $84.31, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SAH chain at a 143-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 SAH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$85.00	$8.15

SAH long put risk and reward

Net Premium / Debit: -$815.00
Max Profit (per contract): $7,684.00
Max Loss (per contract): -$815.00
Breakeven(s): $76.85
Risk / Reward Ratio: 9.428

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

SAH long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on SAH. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$7,684.00
$18.65	-77.9%	+$5,819.97
$37.29	-55.8%	+$3,955.94
$55.93	-33.7%	+$2,091.91
$74.57	-11.6%	+$227.88
$93.21	+10.6%	-$815.00
$111.85	+32.7%	-$815.00
$130.49	+54.8%	-$815.00
$149.13	+76.9%	-$815.00
$167.77	+99.0%	-$815.00

When traders use long put on SAH

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

SAH thesis for this long put

The market-implied 1-standard-deviation range for SAH extends from approximately $62.99 on the downside to $105.63 on the upside. A SAH long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long SAH position with one put per 100 shares held. Current SAH IV rank near 20.03% 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 SAH at 88.20%. As a Consumer Cyclical name, SAH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SAH-specific events.

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

Frequently asked questions

What is a long put on SAH?: A long put on SAH is the long put strategy applied to SAH (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 SAH stock trading near $84.31, the strikes shown on this page are snapped to the nearest listed SAH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SAH 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 SAH long put priced from the end-of-day chain at a 30-day expiry (ATM IV 88.20%), the computed maximum profit is $7,684.00 per contract and the computed maximum loss is -$815.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SAH long put?: The breakeven for the SAH long put priced on this page is roughly $76.85 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 SAH market-implied 1-standard-deviation expected move is approximately 25.29%; 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 SAH?: Long puts on SAH hedge an existing long SAH stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SAH exposure being hedged.
How does current SAH implied volatility affect this long put?: SAH ATM IV is at 88.20% with IV rank near 20.03%, 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.