AJG Long Put Strategy
AJG (Arthur J. Gallagher & Co.), in the Financial Services sector, (Insurance - Brokers industry), listed on NYSE.
Arthur J. Gallagher & Co., alongside its various subsidiaries, operates globally, providing a wide array of services that encompass insurance brokerage, expert consulting, and outsourced claims settlement and administration. Its geographic reach extends across the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. The company's business model is divided into two primary segments: Brokerage and Risk Management. The Brokerage division manages both retail and wholesale insurance operations. It also supports other brokers, including independent ones, in securing specialized or hard-to-place insurance coverage.
AJG (Arthur J. Gallagher & Co.) trades in the Financial Services sector, specifically Insurance - Brokers, with a market capitalization of approximately $65.63B, a trailing P/E of 41.79, a beta of 0.50 versus the broader market, a 52-week range of 190.75-313.55, average daily share volume of 1.8M, a public-listing history dating back to 1984, approximately 72K full-time employees. These structural characteristics shape how AJG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.50 indicates AJG 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 41.79 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. AJG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on AJG?
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.
AJG snapshot
As of August 14, 2026, spot at $252.19, ATM IV 30.20%, IV rank 37.94%, expected move 8.66%. The long put on AJG 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 AJG specifically: AJG IV at 30.20% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 8.66% (roughly $21.83 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 AJG expiries trade a higher absolute premium for lower per-day decay. Position sizing on AJG should anchor to the underlying notional of $252.19 per share and to the trader's directional view on AJG stock.
AJG long put setup
The AJG 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 AJG at $252.19 on that close, the first option leg uses a $250.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AJG 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 AJG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $250.00 | $8.30 |
AJG long put risk and reward
- Net Premium / Debit
- -$830.00
- Max Profit (per contract)
- $24,169.00
- Max Loss (per contract)
- -$830.00
- Breakeven(s)
- $241.70
- Risk / Reward Ratio
- 29.119
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
AJG long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on AJG. 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% | +$24,169.00 |
| $55.77 | -77.9% | +$18,593.05 |
| $111.53 | -55.8% | +$13,017.10 |
| $167.29 | -33.7% | +$7,441.15 |
| $223.05 | -11.6% | +$1,865.20 |
| $278.81 | +10.6% | -$830.00 |
| $334.57 | +32.7% | -$830.00 |
| $390.33 | +54.8% | -$830.00 |
| $446.09 | +76.9% | -$830.00 |
| $501.85 | +99.0% | -$830.00 |
When traders use long put on AJG
Long puts on AJG hedge an existing long AJG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AJG exposure being hedged.
AJG thesis for this long put
The market-implied 1-standard-deviation range for AJG extends from approximately $230.36 on the downside to $274.02 on the upside. A AJG long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long AJG position with one put per 100 shares held. Current AJG IV rank near 37.94% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on AJG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AJG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AJG-specific events.
AJG 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. AJG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AJG alongside the broader basket even when AJG-specific fundamentals are unchanged. Long-premium structures like a long put on AJG 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 AJG chain quotes before placing a trade.
Frequently asked questions
- What is a long put on AJG?
- A long put on AJG is the long put strategy applied to AJG (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 AJG stock at $252.19 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AJG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AJG 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 AJG long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.20%), the computed maximum profit is $24,169.00 per contract and the computed maximum loss is -$830.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AJG long put?
- The breakeven for the AJG long put priced on this page is roughly $241.70 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 AJG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.66%; 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 AJG?
- Long puts on AJG hedge an existing long AJG stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying AJG exposure being hedged.
- How does current AJG implied volatility affect this long put?
- AJG ATM IV is at 30.20% with IV rank near 37.94%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.