UMAC Long Put Strategy
UMAC (Unusual Machines, Inc.), in the Financial Services sector, (Shell Companies industry), listed on AMEX.
Unusual Machines, Inc. designs, manufactures, and sells ultra-low latency video goggles for drone pilots. It also operates a drone-focused e-commerce marketplace. The company was formerly known as AerocarveUS Corporation and changed its name to Unusual Machines, Inc. in July 2022. Unusual Machines, Inc. was incorporated in 2019 and is based in San Juan, Puerto Rico.
UMAC (Unusual Machines, Inc.) trades in the Financial Services sector, specifically Shell Companies, with a market capitalization of approximately $582.1M, a beta of 5.36 versus the broader market, a 52-week range of 4.67-23.38, average daily share volume of 4.4M, a public-listing history dating back to 2024, approximately 16 full-time employees. These structural characteristics shape how UMAC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 5.36 indicates UMAC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a long put on UMAC?
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 UMAC snapshot
As of May 15, 2026, spot at $15.83, ATM IV 100.22%, IV rank 26.24%, expected move 28.73%. The long put on UMAC 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 UMAC specifically: UMAC IV at 100.22% is on the cheap side of its 1-year range, which favors premium-buying structures like a UMAC long put, with a market-implied 1-standard-deviation move of approximately 28.73% (roughly $4.55 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 UMAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on UMAC should anchor to the underlying notional of $15.83 per share and to the trader's directional view on UMAC stock.
UMAC long put setup
The UMAC 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 UMAC near $15.83, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UMAC 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 UMAC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $16.00 | $1.95 |
UMAC long put risk and reward
- Net Premium / Debit
- -$195.00
- Max Profit (per contract)
- $1,404.00
- Max Loss (per contract)
- -$195.00
- Breakeven(s)
- $14.05
- Risk / Reward Ratio
- 7.200
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
UMAC long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on UMAC. 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 | -99.9% | +$1,404.00 |
| $3.51 | -77.8% | +$1,054.10 |
| $7.01 | -55.7% | +$704.20 |
| $10.51 | -33.6% | +$354.30 |
| $14.01 | -11.5% | +$4.40 |
| $17.50 | +10.6% | -$195.00 |
| $21.00 | +32.7% | -$195.00 |
| $24.50 | +54.8% | -$195.00 |
| $28.00 | +76.9% | -$195.00 |
| $31.50 | +99.0% | -$195.00 |
When traders use long put on UMAC
Long puts on UMAC hedge an existing long UMAC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying UMAC exposure being hedged.
UMAC thesis for this long put
The market-implied 1-standard-deviation range for UMAC extends from approximately $11.28 on the downside to $20.38 on the upside. A UMAC long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long UMAC position with one put per 100 shares held. Current UMAC IV rank near 26.24% 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 UMAC at 100.22%. As a Financial Services name, UMAC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UMAC-specific events.
UMAC 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. UMAC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UMAC alongside the broader basket even when UMAC-specific fundamentals are unchanged. Long-premium structures like a long put on UMAC 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 UMAC chain quotes before placing a trade.
Frequently asked questions
- What is a long put on UMAC?
- A long put on UMAC is the long put strategy applied to UMAC (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 UMAC stock trading near $15.83, the strikes shown on this page are snapped to the nearest listed UMAC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UMAC 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 UMAC long put priced from the end-of-day chain at a 30-day expiry (ATM IV 100.22%), the computed maximum profit is $1,404.00 per contract and the computed maximum loss is -$195.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UMAC long put?
- The breakeven for the UMAC long put priced on this page is roughly $14.05 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 UMAC market-implied 1-standard-deviation expected move is approximately 28.73%; 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 UMAC?
- Long puts on UMAC hedge an existing long UMAC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying UMAC exposure being hedged.
- How does current UMAC implied volatility affect this long put?
- UMAC ATM IV is at 100.22% with IV rank near 26.24%, 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.