AGM Long Put Strategy
AGM (Federal Agricultural Mortgage), in the Financial Services sector, (Financial - Credit Services industry), listed on NYSE.
Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through seven segments: Farm & Ranch, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments. The Farm & Ranch segment includes the USDA Securities portfolio, Farm & Ranch loans, and AgVantage securities secured by Farm & Ranch loans. The Corporate AgFinance segment includes loans and AgVantage securities to larger and more complex farming operations, agribusinesses focused on food and fiber processing, and other supply chain production. The Power & Utilities segment includes loans to rural electric generation and transmission cooperatives and distribution cooperatives, as well as AgVantage securities secured by those types of loans. The Broadband Infrastructure segment includes loans to rural fiber, cable/broadband, tower, wireless, local exchange carrier, and data center projects.
AGM (Federal Agricultural Mortgage) trades in the Financial Services sector, specifically Financial - Credit Services, with a market capitalization of approximately $2.59B, a trailing P/E of 11.28, a beta of 1.00 versus the broader market, a 52-week range of 136.57-248.29, average daily share volume of 123K, a public-listing history dating back to 1994, approximately 212 full-time employees. These structural characteristics shape how AGM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places AGM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.28 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AGM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on AGM?
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.
AGM snapshot
As of August 14, 2026, spot at $233.24, ATM IV 28.00%, IV rank 5.33%, expected move 8.03%. The long put on AGM 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 AGM specifically: AGM IV at 28.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a AGM long put, with a market-implied 1-standard-deviation move of approximately 8.03% (roughly $18.72 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 AGM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGM should anchor to the underlying notional of $233.24 per share and to the trader's directional view on AGM stock.
AGM long put setup
The AGM 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 AGM at $233.24 on that close, the first option leg uses a $230.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGM 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 AGM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $230.00 | $6.65 |
AGM long put risk and reward
- Net Premium / Debit
- -$665.00
- Max Profit (per contract)
- $22,334.00
- Max Loss (per contract)
- -$665.00
- Breakeven(s)
- $223.35
- Risk / Reward Ratio
- 33.585
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
AGM long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on AGM. 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% | +$22,334.00 |
| $51.58 | -77.9% | +$17,177.05 |
| $103.15 | -55.8% | +$12,020.09 |
| $154.72 | -33.7% | +$6,863.14 |
| $206.29 | -11.6% | +$1,706.18 |
| $257.86 | +10.6% | -$665.00 |
| $309.43 | +32.7% | -$665.00 |
| $361.00 | +54.8% | -$665.00 |
| $412.57 | +76.9% | -$665.00 |
| $464.14 | +99.0% | -$665.00 |
When traders use long put on AGM
Long puts on AGM hedge an existing long AGM stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AGM exposure being hedged.
AGM thesis for this long put
The market-implied 1-standard-deviation range for AGM extends from approximately $214.52 on the downside to $251.96 on the upside. A AGM long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long AGM position with one put per 100 shares held. Current AGM IV rank near 5.33% 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 AGM at 28.00%. As a Financial Services name, AGM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGM-specific events.
AGM 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. AGM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGM alongside the broader basket even when AGM-specific fundamentals are unchanged. Long-premium structures like a long put on AGM 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 AGM chain quotes before placing a trade.
Frequently asked questions
- What is a long put on AGM?
- A long put on AGM is the long put strategy applied to AGM (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 AGM stock at $233.24 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AGM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AGM 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 AGM long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.00%), the computed maximum profit is $22,334.00 per contract and the computed maximum loss is -$665.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGM long put?
- The breakeven for the AGM long put priced on this page is roughly $223.35 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 AGM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.03%; 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 AGM?
- Long puts on AGM hedge an existing long AGM stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AGM exposure being hedged.
- How does current AGM implied volatility affect this long put?
- AGM ATM IV is at 28.00% with IV rank near 5.33%, 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.