SII Long Put Strategy
SII (Sprott Inc.), in the Financial Services sector, (Asset Management industry), listed on NYSE.
Sprott Inc. functions as a publicly listed holding company primarily engaged in asset management. Through its various subsidiary entities, it delivers a comprehensive spectrum of financial provisions to its client base, encompassing asset oversight, investment portfolio administration, wealth advisory, fund supervision, and both administrative and consultative assistance. Its offerings include a range of investment vehicles such as mutual funds, hedge funds, offshore funds, and individually managed accounts. Additionally, the firm conducts broker-dealer activities. Sprott Inc. was founded on February 13, 2008, and its headquarters are located in Toronto, Canada.
SII (Sprott Inc.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.04B, a trailing P/E of 28.75, a beta of 1.35 versus the broader market, a 52-week range of 61.94-169.63, average daily share volume of 192K, a public-listing history dating back to 2010, approximately 131 full-time employees. These structural characteristics shape how SII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates SII has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on SII?
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.
SII snapshot
As of August 14, 2026, spot at $116.94, ATM IV 40.70%, IV rank 25.76%, expected move 11.67%. The long put on SII below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this long put structure on SII specifically: SII IV at 40.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a SII long put, with a market-implied 1-standard-deviation move of approximately 11.67% (roughly $13.64 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SII expiries trade a higher absolute premium for lower per-day decay. Position sizing on SII should anchor to the underlying notional of $116.94 per share and to the trader's directional view on SII stock.
SII long put setup
The SII long put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SII at $116.94 on that close, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SII chain at a 35-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 SII shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $115.00 | $4.95 |
SII long put risk and reward
- Net Premium / Debit
- -$495.00
- Max Profit (per contract)
- $11,004.00
- Max Loss (per contract)
- -$495.00
- Breakeven(s)
- $110.05
- Risk / Reward Ratio
- 22.230
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
SII long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on SII. 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% | +$11,004.00 |
| $25.86 | -77.9% | +$8,418.50 |
| $51.72 | -55.8% | +$5,833.01 |
| $77.57 | -33.7% | +$3,247.51 |
| $103.43 | -11.6% | +$662.01 |
| $129.28 | +10.6% | -$495.00 |
| $155.14 | +32.7% | -$495.00 |
| $180.99 | +54.8% | -$495.00 |
| $206.85 | +76.9% | -$495.00 |
| $232.70 | +99.0% | -$495.00 |
When traders use long put on SII
Long puts on SII hedge an existing long SII stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SII exposure being hedged.
SII thesis for this long put
The market-implied 1-standard-deviation range for SII extends from approximately $103.30 on the downside to $130.58 on the upside. A SII long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long SII position with one put per 100 shares held. Current SII IV rank near 25.76% 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 SII at 40.70%. As a Financial Services name, SII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SII-specific events.
SII 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. SII positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SII alongside the broader basket even when SII-specific fundamentals are unchanged. Long-premium structures like a long put on SII 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 SII chain quotes before placing a trade.
Frequently asked questions
- What is a long put on SII?
- A long put on SII is the long put strategy applied to SII (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 SII stock at $116.94 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SII chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SII 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 SII long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.70%), the computed maximum profit is $11,004.00 per contract and the computed maximum loss is -$495.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SII long put?
- The breakeven for the SII long put priced on this page is roughly $110.05 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.67%; 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 SII?
- Long puts on SII hedge an existing long SII stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SII exposure being hedged.
- How does current SII implied volatility affect this long put?
- SII ATM IV is at 40.70% with IV rank near 25.76%, 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.