TK Long Put Strategy
TK (Teekay Corporation), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company provides a full suite of ship-to-ship transfer services in the oil, gas, and dry bulk industries; lightering and lightering support; and operational and maintenance marine, as well as offshore production services. As of March 1, 2022, it operated a fleet of approximately 55 vessels. The company primarily serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.
TK (Teekay Corporation) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $1.14B, a trailing P/E of 11.74, a beta of 0.16 versus the broader market, a 52-week range of 7.12-14.38, average daily share volume of 573K, a public-listing history dating back to 1995, approximately 2K full-time employees. These structural characteristics shape how TK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.16 indicates TK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.74 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. TK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on TK?
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 TK snapshot
As of May 14, 2026, spot at $13.16, ATM IV 50.50%, IV rank 12.50%, expected move 14.48%. The long put on TK 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 35-day expiry.
Why this long put structure on TK specifically: TK IV at 50.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a TK long put, with a market-implied 1-standard-deviation move of approximately 14.48% (roughly $1.91 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 TK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TK should anchor to the underlying notional of $13.16 per share and to the trader's directional view on TK stock.
TK long put setup
The TK 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 TK near $13.16, the first option leg uses a $13.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TK 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 TK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $13.16 | N/A |
TK long put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
TK long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on TK. 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.
When traders use long put on TK
Long puts on TK hedge an existing long TK stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying TK exposure being hedged.
TK thesis for this long put
The market-implied 1-standard-deviation range for TK extends from approximately $11.25 on the downside to $15.07 on the upside. A TK long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long TK position with one put per 100 shares held. Current TK IV rank near 12.50% 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 TK at 50.50%. As a Energy name, TK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TK-specific events.
TK 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. TK positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TK alongside the broader basket even when TK-specific fundamentals are unchanged. Long-premium structures like a long put on TK 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 TK chain quotes before placing a trade.
Frequently asked questions
- What is a long put on TK?
- A long put on TK is the long put strategy applied to TK (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 TK stock trading near $13.16, the strikes shown on this page are snapped to the nearest listed TK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TK 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 TK long put priced from the end-of-day chain at a 30-day expiry (ATM IV 50.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TK long put?
- The breakeven for the TK long put priced on this page is no defined breakeven on the modeled curve 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 TK market-implied 1-standard-deviation expected move is approximately 14.48%; 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 TK?
- Long puts on TK hedge an existing long TK stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying TK exposure being hedged.
- How does current TK implied volatility affect this long put?
- TK ATM IV is at 50.50% with IV rank near 12.50%, 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.