EGBN Long Put Strategy
EGBN (Eagle Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; and other services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, the company offers insurance products and services through a referral program. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, non-profit organizations and associations, and individuals, as well as investors. As of December 31, 2021, it operated seventeen banking offices comprising 6 in Suburban Maryland, 5 in the District of Columbia, and 6 in Northern Virginia.
EGBN (Eagle Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $761.5M, a beta of 0.96 versus the broader market, a 52-week range of 15.03-29.26, average daily share volume of 297K, a public-listing history dating back to 1999, approximately 451 full-time employees. These structural characteristics shape how EGBN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places EGBN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EGBN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on EGBN?
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 EGBN snapshot
As of May 15, 2026, spot at $24.40, ATM IV 35.90%, IV rank 8.26%, expected move 10.29%. The long put on EGBN 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 EGBN specifically: EGBN IV at 35.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a EGBN long put, with a market-implied 1-standard-deviation move of approximately 10.29% (roughly $2.51 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 EGBN expiries trade a higher absolute premium for lower per-day decay. Position sizing on EGBN should anchor to the underlying notional of $24.40 per share and to the trader's directional view on EGBN stock.
EGBN long put setup
The EGBN 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 EGBN near $24.40, the first option leg uses a $24.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EGBN 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 EGBN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $24.40 | N/A |
EGBN 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.
EGBN long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on EGBN. 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 EGBN
Long puts on EGBN hedge an existing long EGBN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying EGBN exposure being hedged.
EGBN thesis for this long put
The market-implied 1-standard-deviation range for EGBN extends from approximately $21.89 on the downside to $26.91 on the upside. A EGBN long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long EGBN position with one put per 100 shares held. Current EGBN IV rank near 8.26% 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 EGBN at 35.90%. As a Financial Services name, EGBN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EGBN-specific events.
EGBN 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. EGBN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EGBN alongside the broader basket even when EGBN-specific fundamentals are unchanged. Long-premium structures like a long put on EGBN 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 EGBN chain quotes before placing a trade.
Frequently asked questions
- What is a long put on EGBN?
- A long put on EGBN is the long put strategy applied to EGBN (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 EGBN stock trading near $24.40, the strikes shown on this page are snapped to the nearest listed EGBN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EGBN 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 EGBN long put priced from the end-of-day chain at a 30-day expiry (ATM IV 35.90%), 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 EGBN long put?
- The breakeven for the EGBN 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 EGBN market-implied 1-standard-deviation expected move is approximately 10.29%; 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 EGBN?
- Long puts on EGBN hedge an existing long EGBN stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying EGBN exposure being hedged.
- How does current EGBN implied volatility affect this long put?
- EGBN ATM IV is at 35.90% with IV rank near 8.26%, 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.