GWRE Long Put Strategy
GWRE (Guidewire Software, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
Guidewire Software, Inc. provides software products for property and casualty insurers worldwide. The company offers Guidewire InsuranceSuite comprising Guidewire PolicyCenter, BillingCenter, and ClaimCenter applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed. In addition, the company offers Guidewire Rating Management to manage the pricing of insurance products; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; Guidewire Client Data Management to capitalize on customer information; and Guidewire Product Content Management that offers software tools and standards-based line-of-business templates to introduce and modify products. Further, it provides Guidewire Underwriting Management, a cloud-based integrated business application; Guidewire AppReader, a submission intake management solution; Guidewire ClaimCenter Package for the London market supports the claims workflow used by London Market insurers and brokers; Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and Guidewire for Salesforce to provide customer information regarding policies and claims. Additionally, the company offers Guidewire Predictive Analytics, a set of cloud-native applications; Guidewire Risk Insights that allows insurers to assess new and evolving risks; Guidewire Business Intelligence that allows insurers to measure business performance; Guidewire DataHub, an operational data store; and Guidewire InfoCenter, a business intelligence warehouse, as well as implementation and integration, and professional services.
GWRE (Guidewire Software, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $10.68B, a trailing P/E of 56.26, a beta of 0.91 versus the broader market, a 52-week range of 115.57-272.6, average daily share volume of 1.5M, a public-listing history dating back to 2012, approximately 4K full-time employees. These structural characteristics shape how GWRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places GWRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 56.26 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 GWRE?
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 GWRE snapshot
As of May 15, 2026, spot at $129.74, ATM IV 71.70%, IV rank 66.35%, expected move 20.56%. The long put on GWRE 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 GWRE specifically: GWRE IV at 71.70% 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 20.56% (roughly $26.67 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 GWRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GWRE should anchor to the underlying notional of $129.74 per share and to the trader's directional view on GWRE stock.
GWRE long put setup
The GWRE 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 GWRE near $129.74, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GWRE 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 GWRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $130.00 | $11.05 |
GWRE long put risk and reward
- Net Premium / Debit
- -$1,105.00
- Max Profit (per contract)
- $11,894.00
- Max Loss (per contract)
- -$1,105.00
- Breakeven(s)
- $118.95
- Risk / Reward Ratio
- 10.764
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
GWRE long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on GWRE. 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% | +$11,894.00 |
| $28.70 | -77.9% | +$9,025.49 |
| $57.38 | -55.8% | +$6,156.97 |
| $86.07 | -33.7% | +$3,288.46 |
| $114.75 | -11.6% | +$419.95 |
| $143.44 | +10.6% | -$1,105.00 |
| $172.12 | +32.7% | -$1,105.00 |
| $200.81 | +54.8% | -$1,105.00 |
| $229.49 | +76.9% | -$1,105.00 |
| $258.18 | +99.0% | -$1,105.00 |
When traders use long put on GWRE
Long puts on GWRE hedge an existing long GWRE stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying GWRE exposure being hedged.
GWRE thesis for this long put
The market-implied 1-standard-deviation range for GWRE extends from approximately $103.07 on the downside to $156.41 on the upside. A GWRE long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long GWRE position with one put per 100 shares held. Current GWRE IV rank near 66.35% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on GWRE should anchor more to the directional view and the expected-move geometry. As a Technology name, GWRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GWRE-specific events.
GWRE 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. GWRE positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GWRE alongside the broader basket even when GWRE-specific fundamentals are unchanged. Long-premium structures like a long put on GWRE 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 GWRE chain quotes before placing a trade.
Frequently asked questions
- What is a long put on GWRE?
- A long put on GWRE is the long put strategy applied to GWRE (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 GWRE stock trading near $129.74, the strikes shown on this page are snapped to the nearest listed GWRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GWRE 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 GWRE long put priced from the end-of-day chain at a 30-day expiry (ATM IV 71.70%), the computed maximum profit is $11,894.00 per contract and the computed maximum loss is -$1,105.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GWRE long put?
- The breakeven for the GWRE long put priced on this page is roughly $118.95 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 GWRE market-implied 1-standard-deviation expected move is approximately 20.56%; 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 GWRE?
- Long puts on GWRE hedge an existing long GWRE stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying GWRE exposure being hedged.
- How does current GWRE implied volatility affect this long put?
- GWRE ATM IV is at 71.70% with IV rank near 66.35%, 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.