PAAS Long Put Strategy
PAAS (Pan American Silver Corp.), in the Basic Materials sector, (Silver industry), listed on NYSE.
Pan American Silver Corp. is a mining enterprise dedicated to the full spectrum of metal operations, from discovery and site development to extraction, refinement, and environmental reclamation. The company focuses on precious and base metals including silver, gold, zinc, lead, and copper. Its extensive operations are situated across several countries, specifically Canada, Mexico, Peru, Argentina, and Bolivia, where it manages key mining properties such as La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, San Vicente, Joaquin, Cap-Oeste Sur Este, and Navidad. Founded in 1979 as Pan American Minerals Corp., the firm officially changed its name to Pan American Silver Corp. in April 1995 and is headquartered in Vancouver, Canada.
PAAS (Pan American Silver Corp.) trades in the Basic Materials sector, specifically Silver, with a market capitalization of approximately $19.98B, a trailing P/E of 14.44, a beta of 1.55 versus the broader market, a 52-week range of 30.59-69.99, average daily share volume of 4.7M, a public-listing history dating back to 1995, approximately 9K full-time employees. These structural characteristics shape how PAAS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.55 indicates PAAS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PAAS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on PAAS?
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.
PAAS snapshot
As of August 14, 2026, spot at $47.38, ATM IV 47.47%, IV rank 25.83%, expected move 13.61%. The long put on PAAS 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 28-day expiry.
Why this long put structure on PAAS specifically: PAAS IV at 47.47% is on the cheap side of its 1-year range, which favors premium-buying structures like a PAAS long put, with a market-implied 1-standard-deviation move of approximately 13.61% (roughly $6.45 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PAAS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAAS should anchor to the underlying notional of $47.38 per share and to the trader's directional view on PAAS stock.
PAAS long put setup
The PAAS 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 PAAS at $47.38 on that close, the first option leg uses a $47.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAAS chain at a 28-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 PAAS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $47.00 | $2.30 |
PAAS long put risk and reward
- Net Premium / Debit
- -$230.00
- Max Profit (per contract)
- $4,469.00
- Max Loss (per contract)
- -$230.00
- Breakeven(s)
- $44.70
- Risk / Reward Ratio
- 19.430
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
PAAS long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on PAAS. 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% | +$4,469.00 |
| $10.48 | -77.9% | +$3,421.51 |
| $20.96 | -55.8% | +$2,374.03 |
| $31.43 | -33.7% | +$1,326.54 |
| $41.91 | -11.5% | +$279.05 |
| $52.38 | +10.6% | -$230.00 |
| $62.86 | +32.7% | -$230.00 |
| $73.33 | +54.8% | -$230.00 |
| $83.81 | +76.9% | -$230.00 |
| $94.28 | +99.0% | -$230.00 |
When traders use long put on PAAS
Long puts on PAAS hedge an existing long PAAS stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PAAS exposure being hedged.
PAAS thesis for this long put
The market-implied 1-standard-deviation range for PAAS extends from approximately $40.93 on the downside to $53.83 on the upside. A PAAS long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PAAS position with one put per 100 shares held. Current PAAS IV rank near 25.83% 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 PAAS at 47.47%. As a Basic Materials name, PAAS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAAS-specific events.
PAAS 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. PAAS positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PAAS alongside the broader basket even when PAAS-specific fundamentals are unchanged. Long-premium structures like a long put on PAAS 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 PAAS chain quotes before placing a trade.
Frequently asked questions
- What is a long put on PAAS?
- A long put on PAAS is the long put strategy applied to PAAS (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 PAAS stock at $47.38 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PAAS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PAAS 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 PAAS long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.47%), the computed maximum profit is $4,469.00 per contract and the computed maximum loss is -$230.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PAAS long put?
- The breakeven for the PAAS long put priced on this page is roughly $44.70 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 PAAS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.61%; 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 PAAS?
- Long puts on PAAS hedge an existing long PAAS stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PAAS exposure being hedged.
- How does current PAAS implied volatility affect this long put?
- PAAS ATM IV is at 47.47% with IV rank near 25.83%, 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.