PESI Long Put Strategy
PESI (Perma-Fix Environmental Services, Inc.), in the Industrials sector, (Waste Management industry), listed on NASDAQ.
Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. It operates in three segments: Treatment, Services, and Medical. The Treatment segment offers nuclear, low-level radioactive, mixed waste, hazardous and non-hazardous waste treatment, and processing and disposal services through treatment and storage facilities. This segment is also involved in the research and development activities to identify, develop, and implement waste processing techniques for problematic waste streams. The Services segment provides technical services, including professional radiological measurement and site survey of government and commercial installations; integrated occupational safety and health services; and consulting, engineering, project and waste management, environmental, decontamination and decommissioning (D&D) field, technical, on-site waste management services, and management personnel and services. This segment also offers nuclear services, including technology-based services comprising engineering, D&D, specialty, construction, logistics, transportation, processing, and disposal; offers remediation of nuclear licensed and federal facilities, as well as cleanup of nuclear legacy sites; and owns an equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources health physics, industrial hygiene, and customized nuclear, environmental, and occupational safety and health instrumentation.
PESI (Perma-Fix Environmental Services, Inc.) trades in the Industrials sector, specifically Waste Management, with a market capitalization of approximately $180.1M, a beta of 0.61 versus the broader market, a 52-week range of 8.02-16.5, average daily share volume of 168K, a public-listing history dating back to 1992, approximately 293 full-time employees. These structural characteristics shape how PESI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.61 indicates PESI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a long put on PESI?
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 PESI snapshot
As of May 15, 2026, spot at $9.75, ATM IV 69.10%, IV rank 14.05%, expected move 19.81%. The long put on PESI 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 PESI specifically: PESI IV at 69.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a PESI long put, with a market-implied 1-standard-deviation move of approximately 19.81% (roughly $1.93 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 PESI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PESI should anchor to the underlying notional of $9.75 per share and to the trader's directional view on PESI stock.
PESI long put setup
The PESI 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 PESI near $9.75, the first option leg uses a $9.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PESI 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 PESI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $9.75 | N/A |
PESI 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.
PESI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on PESI. 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 PESI
Long puts on PESI hedge an existing long PESI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PESI exposure being hedged.
PESI thesis for this long put
The market-implied 1-standard-deviation range for PESI extends from approximately $7.82 on the downside to $11.68 on the upside. A PESI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PESI position with one put per 100 shares held. Current PESI IV rank near 14.05% 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 PESI at 69.10%. As a Industrials name, PESI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PESI-specific events.
PESI 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. PESI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PESI alongside the broader basket even when PESI-specific fundamentals are unchanged. Long-premium structures like a long put on PESI 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 PESI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on PESI?
- A long put on PESI is the long put strategy applied to PESI (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 PESI stock trading near $9.75, the strikes shown on this page are snapped to the nearest listed PESI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PESI 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 PESI long put priced from the end-of-day chain at a 30-day expiry (ATM IV 69.10%), 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 PESI long put?
- The breakeven for the PESI 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 PESI market-implied 1-standard-deviation expected move is approximately 19.81%; 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 PESI?
- Long puts on PESI hedge an existing long PESI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PESI exposure being hedged.
- How does current PESI implied volatility affect this long put?
- PESI ATM IV is at 69.10% with IV rank near 14.05%, 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.