PD Long Put Strategy
PD (PagerDuty, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
PagerDuty, Inc. operates a digital operations management platform in the United States, Japan, and internationally. Its digital operations management platform collects data digital signals from virtually any software-enabled system or device, and leverage powerful machine learning to correlate, process, and predict opportunities and issues. It serves various industries, including software and technology, telecommunications, retail, travel and hospitality, media and entertainment, and financial services. PagerDuty, Inc. was founded in 2009 and is headquartered in San Francisco, California.
PD (PagerDuty, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $566.8M, a trailing P/E of 3.38, a beta of 0.78 versus the broader market, a 52-week range of 5.7-18, average daily share volume of 3.1M, a public-listing history dating back to 2019, approximately 1K full-time employees. These structural characteristics shape how PD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places PD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 3.38 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a long put on PD?
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 PD snapshot
As of May 15, 2026, spot at $6.75, ATM IV 85.20%, IV rank 19.58%, expected move 24.43%. The long put on PD 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 PD specifically: PD IV at 85.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a PD long put, with a market-implied 1-standard-deviation move of approximately 24.43% (roughly $1.65 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 PD expiries trade a higher absolute premium for lower per-day decay. Position sizing on PD should anchor to the underlying notional of $6.75 per share and to the trader's directional view on PD stock.
PD long put setup
The PD 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 PD near $6.75, the first option leg uses a $6.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PD 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 PD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $6.75 | N/A |
PD 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.
PD long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on PD. 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 PD
Long puts on PD hedge an existing long PD stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PD exposure being hedged.
PD thesis for this long put
The market-implied 1-standard-deviation range for PD extends from approximately $5.10 on the downside to $8.40 on the upside. A PD long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PD position with one put per 100 shares held. Current PD IV rank near 19.58% 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 PD at 85.20%. As a Technology name, PD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PD-specific events.
PD 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. PD positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PD alongside the broader basket even when PD-specific fundamentals are unchanged. Long-premium structures like a long put on PD 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 PD chain quotes before placing a trade.
Frequently asked questions
- What is a long put on PD?
- A long put on PD is the long put strategy applied to PD (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 PD stock trading near $6.75, the strikes shown on this page are snapped to the nearest listed PD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PD 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 PD long put priced from the end-of-day chain at a 30-day expiry (ATM IV 85.20%), 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 PD long put?
- The breakeven for the PD 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 PD market-implied 1-standard-deviation expected move is approximately 24.43%; 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 PD?
- Long puts on PD hedge an existing long PD stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PD exposure being hedged.
- How does current PD implied volatility affect this long put?
- PD ATM IV is at 85.20% with IV rank near 19.58%, 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.