PEN Long Put Strategy

PEN (Penumbra, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.

Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers aspiration based thrombectomy systems and accessory devices, including revascularization device for mechanical thrombectomy, such as Penumbra System under the Penumbra RED, JET, ACE, 3D Revascularization Device, and Penumbra ENGINE brands, as well as components and accessories; neurovascular embolization coiling systems to treat patients with various sizes of aneurysms and other neurovascular lesions under the Penumbra Coil 400, POD400, PAC400, and Penumbra SMART Coil brand names; and neurovascular access systems designed to provide intracranial access for use in a range of neurovascular therapies under the Neuron, Neuron MAX, Select, BENCHMARK, BMX96, DDC, and PX SLIM brands. It also provides neurosurgical aspiration tools for the removal of tissue and fluids under the Artemis Neuro Evacuation Device brand; aspiration-based thrombectomy systems for vascular applications under the Indigo System brand; and detachable embolic coil systems for peripheral embolization under the Ruby Coil and Ruby LP brand names. In addition, the company offers microcatheter for the delivery of detachable coils and occlusion devices under the LANTERN brand; and detachable, microcatheter-deliverable occlusion devices designed primarily to occlude peripheral vessels under the POD (Penumbra Occlusion Device) brand, as well as immersive computer-based technologies and immersive therapeutics to promote health, motor function, and cognition under the Real Immersive System brand; and a complementary device for use with Ruby Coil and POD for vessel occlusion under the Packing Coil and Packing Coil LP brands. The company sells its products through direct sales organizations and distributors. Penumbra, Inc. was incorporated in 2004 and is headquartered in Alameda, California.

PEN (Penumbra, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $12.69B, a trailing P/E of 74.07, a beta of 0.74 versus the broader market, a 52-week range of 221.26-362.41, average daily share volume of 578K, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how PEN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.74 places PEN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 74.07 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a long put on PEN?

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 PEN snapshot

As of May 15, 2026, spot at $322.73, ATM IV 46.10%, IV rank 9.07%, expected move 13.22%. The long put on PEN 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 PEN specifically: PEN IV at 46.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a PEN long put, with a market-implied 1-standard-deviation move of approximately 13.22% (roughly $42.65 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 PEN expiries trade a higher absolute premium for lower per-day decay. Position sizing on PEN should anchor to the underlying notional of $322.73 per share and to the trader's directional view on PEN stock.

PEN long put setup

The PEN 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 PEN near $322.73, the first option leg uses a $320.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PEN 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 PEN shares for the stock leg in covered calls and collars).

PEN long put risk and reward

Net Premium / Debit

-$1,666.00

Max Profit (per contract)

$30,333.00

Max Loss (per contract)

-$1,666.00

Breakeven(s)

$303.34

Risk / Reward Ratio

18.207

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

PEN long put payoff curve

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

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

PEN thesis for this long put

The market-implied 1-standard-deviation range for PEN extends from approximately $280.08 on the downside to $365.38 on the upside. A PEN long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PEN position with one put per 100 shares held. Current PEN IV rank near 9.07% 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 PEN at 46.10%. As a Healthcare name, PEN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PEN-specific events.

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

Frequently asked questions

What is a long put on PEN?

A long put on PEN is the long put strategy applied to PEN (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 PEN stock trading near $322.73, the strikes shown on this page are snapped to the nearest listed PEN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.

How are PEN 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 PEN long put priced from the end-of-day chain at a 30-day expiry (ATM IV 46.10%), the computed maximum profit is $30,333.00 per contract and the computed maximum loss is -$1,666.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PEN long put?

The breakeven for the PEN long put priced on this page is roughly $303.34 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 PEN market-implied 1-standard-deviation expected move is approximately 13.22%; 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 PEN?

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

How does current PEN implied volatility affect this long put?

PEN ATM IV is at 46.10% with IV rank near 9.07%, 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.

Related PEN analysis

• Long Put strategy reference
• PEN options overview
• PEN P&L curve (full chain)
• PEN options chain
• PEN volatility skew