BPOP Long Put Strategy
BPOP (Popular, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Popular, Inc., along with its subsidiaries, offers a broad spectrum of financial products and services encompassing retail, mortgage, and commercial banking. These operations extend across Puerto Rico, the United States, and the British Virgin Islands. The company provides various deposit options, including interest-bearing accounts such as savings, NOW, and money market accounts, alongside non-interest-bearing demand deposits and certificates of deposit. Its diverse lending activities include commercial and industrial financing, loans for multi-family and commercial real estate, and residential mortgage products. For individual consumers, Popular provides personal loans, credit cards, automobile financing, and home equity lines of credit. Construction project funding and lease financing, especially for vehicles, are also part of its offerings.
BPOP (Popular, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $11.36B, a trailing P/E of 11.72, a beta of 0.62 versus the broader market, a 52-week range of 108.74-179.14, average daily share volume of 510K, a public-listing history dating back to 1980, approximately 9K full-time employees. These structural characteristics shape how BPOP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.62 indicates BPOP 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 11.72 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. BPOP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on BPOP?
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.
BPOP snapshot
As of August 14, 2026, spot at $177.65, ATM IV 20.00%, IV rank 2.77%, expected move 5.73%. The long put on BPOP 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 BPOP specifically: BPOP IV at 20.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a BPOP long put, with a market-implied 1-standard-deviation move of approximately 5.73% (roughly $10.19 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 BPOP expiries trade a higher absolute premium for lower per-day decay. Position sizing on BPOP should anchor to the underlying notional of $177.65 per share and to the trader's directional view on BPOP stock.
BPOP long put setup
The BPOP 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 BPOP at $177.65 on that close, the first option leg uses a $180.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BPOP 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 BPOP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $180.00 | $5.65 |
BPOP long put risk and reward
- Net Premium / Debit
- -$565.00
- Max Profit (per contract)
- $17,434.00
- Max Loss (per contract)
- -$565.00
- Breakeven(s)
- $174.35
- Risk / Reward Ratio
- 30.857
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
BPOP long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on BPOP. 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% | +$17,434.00 |
| $39.29 | -77.9% | +$13,506.17 |
| $78.57 | -55.8% | +$9,578.34 |
| $117.84 | -33.7% | +$5,650.51 |
| $157.12 | -11.6% | +$1,722.68 |
| $196.40 | +10.6% | -$565.00 |
| $235.68 | +32.7% | -$565.00 |
| $274.96 | +54.8% | -$565.00 |
| $314.24 | +76.9% | -$565.00 |
| $353.51 | +99.0% | -$565.00 |
When traders use long put on BPOP
Long puts on BPOP hedge an existing long BPOP stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BPOP exposure being hedged.
BPOP thesis for this long put
The market-implied 1-standard-deviation range for BPOP extends from approximately $167.46 on the downside to $187.84 on the upside. A BPOP long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long BPOP position with one put per 100 shares held. Current BPOP IV rank near 2.77% 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 BPOP at 20.00%. As a Financial Services name, BPOP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BPOP-specific events.
BPOP 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. BPOP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BPOP alongside the broader basket even when BPOP-specific fundamentals are unchanged. Long-premium structures like a long put on BPOP 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 BPOP chain quotes before placing a trade.
Frequently asked questions
- What is a long put on BPOP?
- A long put on BPOP is the long put strategy applied to BPOP (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 BPOP stock at $177.65 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BPOP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BPOP 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 BPOP long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.00%), the computed maximum profit is $17,434.00 per contract and the computed maximum loss is -$565.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BPOP long put?
- The breakeven for the BPOP long put priced on this page is roughly $174.35 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 BPOP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.73%; 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 BPOP?
- Long puts on BPOP hedge an existing long BPOP stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BPOP exposure being hedged.
- How does current BPOP implied volatility affect this long put?
- BPOP ATM IV is at 20.00% with IV rank near 2.77%, 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.