DGII Long Put Strategy
DGII (Digi International Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Digi International Inc. is a global leader in providing essential Internet of Things (IoT) products, services, and complete solutions for mission-critical business applications. The company operates through two primary divisions: IoT Products & Services and IoT Solutions. Its extensive portfolio encompasses a range of hardware components, including cellular routers designed for robust wireless connectivity in critical environments, and cellular modules that enable the direct integration of communication capabilities into customer products. Console servers facilitate secure remote access to network equipment, whether located in data centers or at distributed edge locations. Under the Digi XBee brand, the company offers radio frequency products such as embedded wireless modules, off-the-shelf gateways, modems, and adapters. Further embedded system solutions are offered under the Digi Connect, ConnectCore, and Rabbit trademarks.
DGII (Digi International Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $2.66B, a trailing P/E of 61.42, a beta of 0.98 versus the broader market, a 52-week range of 30.69-71.5538, average daily share volume of 333K, a public-listing history dating back to 1989, approximately 805 full-time employees. These structural characteristics shape how DGII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places DGII roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 61.42 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.
What is a long put on DGII?
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 DGII snapshot
As of June 29, 2026, spot at $73.43, ATM IV 41.70%, IV rank 10.98%, expected move 11.96%. The long put on DGII 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 18-day expiry.
Why this long put structure on DGII specifically: DGII IV at 41.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a DGII long put, with a market-implied 1-standard-deviation move of approximately 11.96% (roughly $8.78 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DGII expiries trade a higher absolute premium for lower per-day decay. Position sizing on DGII should anchor to the underlying notional of $73.43 per share and to the trader's directional view on DGII stock.
DGII long put setup
The DGII 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 DGII near $73.43, the first option leg uses a $73.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DGII chain at a 18-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 DGII shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $73.43 | N/A |
DGII 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.
DGII long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on DGII. 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 DGII
Long puts on DGII hedge an existing long DGII stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying DGII exposure being hedged.
DGII thesis for this long put
The market-implied 1-standard-deviation range for DGII extends from approximately $64.65 on the downside to $82.21 on the upside. A DGII long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long DGII position with one put per 100 shares held. Current DGII IV rank near 10.98% 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 DGII at 41.70%. As a Technology name, DGII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DGII-specific events.
DGII 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. DGII positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DGII alongside the broader basket even when DGII-specific fundamentals are unchanged. Long-premium structures like a long put on DGII 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 DGII chain quotes before placing a trade.
Frequently asked questions
- What is a long put on DGII?
- A long put on DGII is the long put strategy applied to DGII (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 DGII stock trading near $73.43, the strikes shown on this page are snapped to the nearest listed DGII chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DGII 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 DGII long put priced from the end-of-day chain at a 30-day expiry (ATM IV 41.70%), 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 DGII long put?
- The breakeven for the DGII long put priced on this page is no defined breakeven on the modeled curve 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 DGII market-implied 1-standard-deviation expected move is approximately 11.96%; 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 DGII?
- Long puts on DGII hedge an existing long DGII stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying DGII exposure being hedged.
- How does current DGII implied volatility affect this long put?
- DGII ATM IV is at 41.70% with IV rank near 10.98%, 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.