TVTX Long Put Strategy
TVTX (Travere Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Travere Therapeutics, Inc., a biopharmaceutical company, focuses on the identification, development, commercialization, and delivering of therapies for the treatment of rare diseases. Its marketed products include Chenodal, a synthetic oral form of chenodeoxycholic acid for the treatment of radiolucent stones in gallbladders; Cholbam, a cholic acid capsule to treat pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects, as well as for adjunctive treatment of patients with peroxisomal disorders; and Thiola and Thiola EC, a tiopronin tablet for the treatment of homozygous cystinuria. The company's product candidates also consist of Sparsentan, which is in Phase III clinical trial for the treatment of focal segmental glomerulosclerosis and immunoglobulin A nephropathy; and TVT-058, a novel investigational human enzyme replacement candidate, which is in Phase I/II clinical trials for the treatment of classical homocystinuria. It has a cooperative research and development agreement with National Institutes of Health's National Center for Advancing Translational Sciences and patient advocacy organizations, CDG Care, and Alagille Syndrome Alliance for the identification of potential small molecule therapeutics for NGLY1 deficiency and Alagille syndrome. The company was formerly known as Retrophin, Inc. and changed its name to Travere Therapeutics, Inc. in November 2020. Travere Therapeutics, Inc. was incorporated in 2008 and is headquartered in San Diego, California.
TVTX (Travere Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $4.14B, a beta of 1.14 versus the broader market, a 52-week range of 13.88-48.61, average daily share volume of 2.1M, a public-listing history dating back to 2012, approximately 385 full-time employees. These structural characteristics shape how TVTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.14 places TVTX 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 TVTX?
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 TVTX snapshot
As of May 15, 2026, spot at $42.70, ATM IV 48.50%, IV rank 5.04%, expected move 13.90%. The long put on TVTX 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 126-day expiry.
Why this long put structure on TVTX specifically: TVTX IV at 48.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a TVTX long put, with a market-implied 1-standard-deviation move of approximately 13.90% (roughly $5.94 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TVTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TVTX should anchor to the underlying notional of $42.70 per share and to the trader's directional view on TVTX stock.
TVTX long put setup
The TVTX 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 TVTX near $42.70, the first option leg uses a $42.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TVTX chain at a 126-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 TVTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $42.50 | $5.00 |
TVTX long put risk and reward
- Net Premium / Debit
- -$500.00
- Max Profit (per contract)
- $3,749.00
- Max Loss (per contract)
- -$500.00
- Breakeven(s)
- $37.50
- Risk / Reward Ratio
- 7.498
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
TVTX long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on TVTX. 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% | +$3,749.00 |
| $9.45 | -77.9% | +$2,804.99 |
| $18.89 | -55.8% | +$1,860.98 |
| $28.33 | -33.7% | +$916.97 |
| $37.77 | -11.5% | -$27.04 |
| $47.21 | +10.6% | -$500.00 |
| $56.65 | +32.7% | -$500.00 |
| $66.09 | +54.8% | -$500.00 |
| $75.53 | +76.9% | -$500.00 |
| $84.97 | +99.0% | -$500.00 |
When traders use long put on TVTX
Long puts on TVTX hedge an existing long TVTX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying TVTX exposure being hedged.
TVTX thesis for this long put
The market-implied 1-standard-deviation range for TVTX extends from approximately $36.76 on the downside to $48.64 on the upside. A TVTX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long TVTX position with one put per 100 shares held. Current TVTX IV rank near 5.04% 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 TVTX at 48.50%. As a Healthcare name, TVTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TVTX-specific events.
TVTX 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. TVTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TVTX alongside the broader basket even when TVTX-specific fundamentals are unchanged. Long-premium structures like a long put on TVTX 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 TVTX chain quotes before placing a trade.
Frequently asked questions
- What is a long put on TVTX?
- A long put on TVTX is the long put strategy applied to TVTX (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 TVTX stock trading near $42.70, the strikes shown on this page are snapped to the nearest listed TVTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TVTX 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 TVTX long put priced from the end-of-day chain at a 30-day expiry (ATM IV 48.50%), the computed maximum profit is $3,749.00 per contract and the computed maximum loss is -$500.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TVTX long put?
- The breakeven for the TVTX long put priced on this page is roughly $37.50 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 TVTX market-implied 1-standard-deviation expected move is approximately 13.90%; 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 TVTX?
- Long puts on TVTX hedge an existing long TVTX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying TVTX exposure being hedged.
- How does current TVTX implied volatility affect this long put?
- TVTX ATM IV is at 48.50% with IV rank near 5.04%, 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.