How are PAGP 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 PAGP long put priced from the end-of-day chain at a 30-day expiry (ATM IV 20.20%), the computed maximum profit is $2,326.50 per contract and the computed maximum loss is -$72.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PAGP long put?

The breakeven for the PAGP long put priced on this page is roughly $23.28 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 PAGP market-implied 1-standard-deviation expected move is approximately 5.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PAGP implied volatility affect this long put?

PAGP ATM IV is at 20.20% with IV rank near 2.09%, 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.

PAGP Long Put Strategy

PAGP (Plains GP Holdings LP), in the Energy sector, (Oil & Gas Midstream industry), listed on NASDAQ.

Plains GP Holdings, L.P., through its subsidiary, Plains All American Pipeline, L.P., owns and operates midstream infrastructure systems in the United States and Canada. It operates through Crude Oil and Natural Gas Liquids (NGLs) segments. The company engages in the gathering and transporting crude oil using pipelines, trucks, and barges or railcars. It also provides terminalling, storage, and other related services. In addition, the company is involved in the natural gas processing and NGL fractionation, storage, transportation, and terminalling activities. PAA GP Holdings LLC operates as a general partner of the company.

PAGP (Plains GP Holdings LP) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $4.70B, a trailing P/E of 24.13, a beta of 0.42 versus the broader market, a 52-week range of 16.68-26.15, average daily share volume of 1.7M, a public-listing history dating back to 2013, approximately 4K full-time employees. These structural characteristics shape how PAGP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.42 indicates PAGP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PAGP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on PAGP?

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 PAGP snapshot

As of June 30, 2026, spot at $24.34, ATM IV 20.20%, IV rank 2.09%, expected move 5.79%. The long put on PAGP 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 52-day expiry.

Why this long put structure on PAGP specifically: PAGP IV at 20.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a PAGP long put, with a market-implied 1-standard-deviation move of approximately 5.79% (roughly $1.41 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PAGP expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAGP should anchor to the underlying notional of $24.34 per share and to the trader's directional view on PAGP stock.

PAGP long put setup

The PAGP 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 PAGP near $24.34, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAGP chain at a 52-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 PAGP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$24.00	$0.73

PAGP long put risk and reward

Net Premium / Debit: -$72.50
Max Profit (per contract): $2,326.50
Max Loss (per contract): -$72.50
Breakeven(s): $23.28
Risk / Reward Ratio: 32.090

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

PAGP long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on PAGP. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$2,326.50
$5.39	-77.9%	+$1,788.44
$10.77	-55.7%	+$1,250.38
$16.15	-33.6%	+$712.32
$21.53	-11.5%	+$174.26
$26.91	+10.6%	-$72.50
$32.29	+32.7%	-$72.50
$37.67	+54.8%	-$72.50
$43.05	+76.9%	-$72.50
$48.44	+99.0%	-$72.50

When traders use long put on PAGP

Long puts on PAGP hedge an existing long PAGP stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PAGP exposure being hedged.

PAGP thesis for this long put

The market-implied 1-standard-deviation range for PAGP extends from approximately $22.93 on the downside to $25.75 on the upside. A PAGP long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PAGP position with one put per 100 shares held. Current PAGP IV rank near 2.09% 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 PAGP at 20.20%. As a Energy name, PAGP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAGP-specific events.

PAGP 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. PAGP positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PAGP alongside the broader basket even when PAGP-specific fundamentals are unchanged. Long-premium structures like a long put on PAGP 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 PAGP chain quotes before placing a trade.

Frequently asked questions

What is a long put on PAGP?: A long put on PAGP is the long put strategy applied to PAGP (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 PAGP stock trading near $24.34, the strikes shown on this page are snapped to the nearest listed PAGP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PAGP 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 PAGP long put priced from the end-of-day chain at a 30-day expiry (ATM IV 20.20%), the computed maximum profit is $2,326.50 per contract and the computed maximum loss is -$72.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PAGP long put?: The breakeven for the PAGP long put priced on this page is roughly $23.28 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 PAGP market-implied 1-standard-deviation expected move is approximately 5.79%; 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 PAGP?: Long puts on PAGP hedge an existing long PAGP stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PAGP exposure being hedged.
How does current PAGP implied volatility affect this long put?: PAGP ATM IV is at 20.20% with IV rank near 2.09%, 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.