PAGS Long Put Strategy

PAGS (PagSeguro Digital Ltd.), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.

PagSeguro Digital Ltd., together with its subsidiaries, engages in the provision of financial and payment solutions for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. It provides digital banking solutions, including deposits, top-ups, debt management services, tax collections, wire transfers, ATM withdrawals, and various online and point-of-sale (POS) payment solutions; cards, such as debit, credit, cash, and prepaid cards; and credit products comprising FGTS withdrawals, payroll loans, working capital loans, and overdraft accounts. The company offers insurance services, including account, card, home, business, health assistance, life, and credit life insurance; investment services, such as investment and portfolio advisory, financial education, brokerage, fund management, treasury, and research services; and operates Shopping PagBank, a marketplace for various brands. In addition, it provides software solutions comprising PagVendas, a POS software app; ClubPag, a marketing tool that allows merchants to advertise across client base, available for POS devices; and PlugPag, a wireless solution that connects the machine to the commercial automation system, via Bluetooth technology. The company was founded in 2006 and is headquartered in São Paulo, Brazil.

PAGS (PagSeguro Digital Ltd.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $2.62B, a trailing P/E of 6.13, a beta of 1.30 versus the broader market, a 52-week range of 7.735-12.32, average daily share volume of 3.6M, a public-listing history dating back to 2018, approximately 7K full-time employees. These structural characteristics shape how PAGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.30 places PAGS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.13 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. PAGS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on PAGS?

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 PAGS snapshot

As of June 29, 2026, spot at $9.02, ATM IV 467.50%, IV rank 98.82%, expected move 134.03%. The long put on PAGS 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 PAGS specifically: PAGS IV at 467.50% is rich versus its 1-year range, which makes a premium-buying PAGS long put relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 134.03% (roughly $12.09 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 PAGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAGS should anchor to the underlying notional of $9.02 per share and to the trader's directional view on PAGS stock.

PAGS long put setup

The PAGS 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 PAGS near $9.02, the first option leg uses a $9.02 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAGS 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 PAGS shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Put$9.02N/A

PAGS 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.

PAGS long put payoff curve

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

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

PAGS thesis for this long put

The market-implied 1-standard-deviation range for PAGS extends from approximately $-3.07 on the downside to $21.11 on the upside. A PAGS long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PAGS position with one put per 100 shares held. Current PAGS IV rank near 98.82% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on PAGS at 467.50%. As a Industrials name, PAGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAGS-specific events.

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

Frequently asked questions

What is a long put on PAGS?
A long put on PAGS is the long put strategy applied to PAGS (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 PAGS stock trading near $9.02, the strikes shown on this page are snapped to the nearest listed PAGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PAGS 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 PAGS long put priced from the end-of-day chain at a 30-day expiry (ATM IV 467.50%), 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 PAGS long put?
The breakeven for the PAGS 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 PAGS market-implied 1-standard-deviation expected move is approximately 134.03%; 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 PAGS?
Long puts on PAGS hedge an existing long PAGS stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PAGS exposure being hedged.
How does current PAGS implied volatility affect this long put?
PAGS ATM IV is at 467.50% with IV rank near 98.82%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

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