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 end-of-day chain at a 30-day expiry (ATM IV 33.70%), the computed maximum profit is $19,089.00 per contract and the computed maximum loss is -$910.00 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 $190.90 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 AJG market-implied 1-standard-deviation expected move is approximately 9.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AJG implied volatility affect this long put?

AJG ATM IV is at 33.70% with IV rank near 52.60%, 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.

AJG Long Put Strategy

AJG (Arthur J. Gallagher & Co.), in the Financial Services sector, (Insurance - Brokers industry), listed on NYSE.

Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, third-party claims settlement, and administration services in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. It operates through Brokerage and Risk Management segments. The Brokerage segment consists of retail and wholesale insurance brokerage operations; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverage's to underwriting enterprises. This segment also performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers brokerage and consulting services to businesses and organizations, including commercial, not-for-profit, and public entities, as well as individuals in the areas of insurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services to enterprises and public entities; and claims management, loss control consulting, and insurance property appraisal services.

AJG (Arthur J. Gallagher & Co.) trades in the Financial Services sector, specifically Insurance - Brokers, with a market capitalization of approximately $49.33B, a trailing P/E of 30.63, a beta of 0.55 versus the broader market, a 52-week range of 190.75-351.23, average daily share volume of 2.2M, 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 0.55 indicates AJG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. 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.

Current AJG snapshot

As of May 15, 2026, spot at $199.13, ATM IV 33.70%, IV rank 52.60%, expected move 9.66%. The long put on AJG 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 34-day expiry.

Why this long put structure on AJG specifically: AJG IV at 33.70% 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 9.66% (roughly $19.24 on the underlying). The 34-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 $199.13 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AJG near $199.13, the first option leg uses a $200.00 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 34-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	$200.00	$9.10

AJG long put risk and reward

Net Premium / Debit: -$910.00
Max Profit (per contract): $19,089.00
Max Loss (per contract): -$910.00
Breakeven(s): $190.90
Risk / Reward Ratio: 20.977

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%	+$19,089.00
$44.04	-77.9%	+$14,686.24
$88.07	-55.8%	+$10,283.47
$132.09	-33.7%	+$5,880.71
$176.12	-11.6%	+$1,477.94
$220.15	+10.6%	-$910.00
$264.18	+32.7%	-$910.00
$308.20	+54.8%	-$910.00
$352.23	+76.9%	-$910.00
$396.26	+99.0%	-$910.00

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 $179.89 on the downside to $218.37 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 52.60% 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 trading near $199.13, the strikes shown on this page are snapped to the nearest listed AJG chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 33.70%), the computed maximum profit is $19,089.00 per contract and the computed maximum loss is -$910.00 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 $190.90 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 AJG market-implied 1-standard-deviation expected move is approximately 9.66%; 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 33.70% with IV rank near 52.60%, 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.