SEDG Long Put Strategy
SEDG (SolarEdge Technologies, Inc.), in the Energy sector, (Solar industry), listed on NASDAQ.
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. It operates through five segments: Solar, Energy Storage, e-Mobility, Critical Power, and Automation Machines. The company offers inverters, power optimizers, communication devices, and smart energy management solutions used in residential, commercial, and small utility-scale solar installations; and a cloud-based monitoring platform that collects and processes information from the power optimizers and inverters, as well as monitors and manages the solar PV system. It also provides residential, commercial, and large scale PV, energy storage and backup, electric vehicle charging, and home energy management solutions, as well as grid services; and e-Mobility, automation machines, lithium-ion cells and battery packs, and uninterrupted power supply solutions, as well as virtual power plants, which helps to manage the load on the grid and grid stability. In addition, the company offers pre-sales support, ongoing trainings, and technical support and after installation services. The company sells its products to the providers of solar PV systems; and solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms.
SEDG (SolarEdge Technologies, Inc.) trades in the Energy sector, specifically Solar, with a market capitalization of approximately $2.60B, a beta of 1.18 versus the broader market, a 52-week range of 13.73-53.75, average daily share volume of 3.9M, a public-listing history dating back to 2015, approximately 4K full-time employees. These structural characteristics shape how SEDG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places SEDG 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 SEDG?
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 SEDG snapshot
As of May 15, 2026, spot at $62.17, ATM IV 120.11%, IV rank 89.73%, expected move 34.44%. The long put on SEDG 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 SEDG specifically: SEDG IV at 120.11% is rich versus its 1-year range, which makes a premium-buying SEDG long put relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 34.44% (roughly $21.41 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 SEDG expiries trade a higher absolute premium for lower per-day decay. Position sizing on SEDG should anchor to the underlying notional of $62.17 per share and to the trader's directional view on SEDG stock.
SEDG long put setup
The SEDG 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 SEDG near $62.17, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SEDG 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 SEDG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $60.00 | $7.00 |
SEDG long put risk and reward
- Net Premium / Debit
- -$700.00
- Max Profit (per contract)
- $5,299.00
- Max Loss (per contract)
- -$700.00
- Breakeven(s)
- $53.00
- Risk / Reward Ratio
- 7.570
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
SEDG long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on SEDG. 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% | +$5,299.00 |
| $13.76 | -77.9% | +$3,924.50 |
| $27.50 | -55.8% | +$2,549.99 |
| $41.25 | -33.7% | +$1,175.49 |
| $54.99 | -11.5% | -$199.01 |
| $68.74 | +10.6% | -$700.00 |
| $82.48 | +32.7% | -$700.00 |
| $96.23 | +54.8% | -$700.00 |
| $109.97 | +76.9% | -$700.00 |
| $123.72 | +99.0% | -$700.00 |
When traders use long put on SEDG
Long puts on SEDG hedge an existing long SEDG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SEDG exposure being hedged.
SEDG thesis for this long put
The market-implied 1-standard-deviation range for SEDG extends from approximately $40.76 on the downside to $83.58 on the upside. A SEDG long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long SEDG position with one put per 100 shares held. Current SEDG IV rank near 89.73% 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 SEDG at 120.11%. As a Energy name, SEDG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SEDG-specific events.
SEDG 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. SEDG positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SEDG alongside the broader basket even when SEDG-specific fundamentals are unchanged. Long-premium structures like a long put on SEDG 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 SEDG chain quotes before placing a trade.
Frequently asked questions
- What is a long put on SEDG?
- A long put on SEDG is the long put strategy applied to SEDG (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 SEDG stock trading near $62.17, the strikes shown on this page are snapped to the nearest listed SEDG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SEDG 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 SEDG long put priced from the end-of-day chain at a 30-day expiry (ATM IV 120.11%), the computed maximum profit is $5,299.00 per contract and the computed maximum loss is -$700.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SEDG long put?
- The breakeven for the SEDG long put priced on this page is roughly $53.00 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 SEDG market-implied 1-standard-deviation expected move is approximately 34.44%; 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 SEDG?
- Long puts on SEDG hedge an existing long SEDG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SEDG exposure being hedged.
- How does current SEDG implied volatility affect this long put?
- SEDG ATM IV is at 120.11% with IV rank near 89.73%, 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.