CGNT Long Put Strategy
CGNT (Cognyte Software Ltd.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Cognyte Software Ltd., established in Herzliya, Israel, in 2020, delivers sophisticated investigative analytics software to a global array of governmental organizations and commercial businesses. Its flagship offering, branded "Actionable Intelligence for a Safer World," is an open-source platform specifically engineered to expedite and bolster the efficacy of investigations. The company's diverse portfolio of solutions includes advanced analytics for network intelligence, open source and threat intelligence, and operational intelligence. These versatile tools are crafted to address a wide variety of scenarios and serve an extensive user base, from data analysts and investigation managers to security operations center operators and field teams. Furthermore, Cognyte offers crucial supplementary services such as customer support, professional guidance, and integration assistance. Its clientele spans national, regional, and local government bodies, alongside commercial entities and physical security firms.
CGNT (Cognyte Software Ltd.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $672.9M, a beta of 1.67 versus the broader market, a 52-week range of 6.29-12.31, average daily share volume of 672K, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how CGNT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.67 indicates CGNT 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 CGNT?
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.
CGNT snapshot
As of August 14, 2026, spot at $9.11, ATM IV 67.20%, IV rank 13.07%, expected move 19.27%. The long put on CGNT below is built from the 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 CGNT specifically: CGNT IV at 67.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a CGNT long put, with a market-implied 1-standard-deviation move of approximately 19.27% (roughly $1.76 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 CGNT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGNT should anchor to the underlying notional of $9.11 per share and to the trader's directional view on CGNT stock.
CGNT long put setup
The CGNT 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 CGNT at $9.11 on that close, the first option leg uses a $9.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGNT 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 CGNT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $9.11 | N/A |
CGNT long put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
CGNT long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on CGNT. 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.
When traders use long put on CGNT
Long puts on CGNT hedge an existing long CGNT stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CGNT exposure being hedged.
CGNT thesis for this long put
The market-implied 1-standard-deviation range for CGNT extends from approximately $7.35 on the downside to $10.87 on the upside. A CGNT long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long CGNT position with one put per 100 shares held. Current CGNT IV rank near 13.07% 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 CGNT at 67.20%. As a Technology name, CGNT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGNT-specific events.
CGNT 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. CGNT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CGNT alongside the broader basket even when CGNT-specific fundamentals are unchanged. Long-premium structures like a long put on CGNT 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 CGNT chain quotes before placing a trade.
Frequently asked questions
- What is a long put on CGNT?
- A long put on CGNT is the long put strategy applied to CGNT (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 CGNT stock at $9.11 on the most recent close, the strikes shown on this page are snapped to the nearest listed CGNT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CGNT 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 CGNT long put priced from the end-of-day chain at a 30-day expiry (ATM IV 67.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CGNT long put?
- The breakeven for the CGNT long put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 CGNT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.27%; 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 CGNT?
- Long puts on CGNT hedge an existing long CGNT stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CGNT exposure being hedged.
- How does current CGNT implied volatility affect this long put?
- CGNT ATM IV is at 67.20% with IV rank near 13.07%, 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.