PATH Long Put Strategy
PATH (UiPath Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.
UiPath Inc. delivers a comprehensive automation ecosystem, specializing in Robotic Process Automation (RPA) solutions, with a significant presence in the United States, Romania, and Japan. The company's integrated software suite empowers organizations to design, administer, execute, interact with, evaluate, and oversee their automation initiatives. This robust platform seamlessly blends artificial intelligence with features such as desktop activity recording and in-depth analysis of both human actions and system logs. Through intuitive visualization tools within a centralized portal, users can effectively discover, analyze, and identify processes ripe for automation. It provides low-code development environments, enabling personnel across an organization to create both human-assisted and fully autonomous automations without needing prior programming knowledge. These automation bots can be deployed for interactive use or run independently in the background, leveraging native connectors for integration with common line-of-business applications.
PATH (UiPath Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $6.83B, a trailing P/E of 18.44, a beta of 1.02 versus the broader market, a 52-week range of 9.2-19.84, average daily share volume of 63.9M, a public-listing history dating back to 2021, approximately 4K full-time employees. These structural characteristics shape how PATH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places PATH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a long put on PATH?
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.
PATH snapshot
As of September 29, 2026, spot at $12.27, ATM IV 56.83%, IV rank 26.62%, expected move 16.30%. The long put on PATH below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 31-day expiry.
Why this long put structure on PATH specifically: PATH IV at 56.83% is on the cheap side of its 1-year range, which favors premium-buying structures like a PATH long put, with a market-implied 1-standard-deviation move of approximately 16.30% (roughly $2.00 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PATH expiries trade a higher absolute premium for lower per-day decay. Position sizing on PATH should anchor to the underlying notional of $12.27 per share and to the trader's directional view on PATH stock.
PATH long put setup
The PATH long put below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PATH at $12.27 on that close, the first option leg uses a $12.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PATH chain at a 31-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 PATH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $12.50 | $0.97 |
PATH long put risk and reward
- Net Premium / Debit
- -$97.00
- Max Profit (per contract)
- $1,152.00
- Max Loss (per contract)
- -$97.00
- Breakeven(s)
- $11.53
- Risk / Reward Ratio
- 11.876
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
PATH long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on PATH. 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 | -99.9% | +$1,152.00 |
| $2.72 | -77.8% | +$880.81 |
| $5.43 | -55.7% | +$609.63 |
| $8.15 | -33.6% | +$338.44 |
| $10.86 | -11.5% | +$67.26 |
| $13.57 | +10.6% | -$97.00 |
| $16.28 | +32.7% | -$97.00 |
| $18.99 | +54.8% | -$97.00 |
| $21.70 | +76.9% | -$97.00 |
| $24.42 | +99.0% | -$97.00 |
When traders use long put on PATH
Long puts on PATH hedge an existing long PATH stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PATH exposure being hedged.
PATH thesis for this long put
The market-implied 1-standard-deviation range for PATH extends from approximately $10.27 on the downside to $14.27 on the upside. A PATH long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PATH position with one put per 100 shares held. Current PATH IV rank near 26.62% 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 PATH at 56.83%. As a Technology name, PATH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PATH-specific events.
PATH 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. PATH positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PATH alongside the broader basket even when PATH-specific fundamentals are unchanged. Long-premium structures like a long put on PATH 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 PATH chain quotes before placing a trade.
Frequently asked questions
- What is a long put on PATH?
- A long put on PATH is the long put strategy applied to PATH (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 PATH stock at $12.27 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed PATH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PATH 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 PATH long put priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 56.83%), the computed maximum profit is $1,152.00 per contract and the computed maximum loss is -$97.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PATH long put?
- The breakeven for the PATH long put priced on this page is roughly $11.53 at expiration, derived from the September 29, 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 PATH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.30%; 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 PATH?
- Long puts on PATH hedge an existing long PATH stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PATH exposure being hedged.
- How does current PATH implied volatility affect this long put?
- PATH ATM IV is at 56.83% with IV rank near 26.62%, 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.