PGC Straddle Strategy
PGC (Peapack-Gladstone Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Peapack-Gladstone Financial Corporation (PGC) functions as the holding company for Peapack-Gladstone Bank, a financial institution primarily dedicated to delivering private banking and comprehensive wealth management services throughout the United States. Its operations are structured into two key divisions: Banking and Peapack Private. For deposit services, PGC provides a range of accounts including standard checking and savings, high-yield money market accounts, interest-bearing checking options, certificates of deposit (CDs), and individual retirement accounts (IRAs). On the lending side, the bank supports businesses with working capital lines of credit, term loans for acquiring fixed assets, commercial and multi-family real estate mortgages, and diverse forms of asset-based financing. It also engages in various commercial and industrial (C&I) lending, equipment finance, and commercial real estate activities. For individual clients, PGC offers residential mortgages, home equity lines of credit (HELOCs), and other second mortgage products.
PGC (Peapack-Gladstone Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $850.3M, a trailing P/E of 19.23, a beta of 0.73 versus the broader market, a 52-week range of 24.42-48.31, average daily share volume of 135K, a public-listing history dating back to 1999, approximately 620 full-time employees. These structural characteristics shape how PGC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.73 places PGC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PGC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on PGC?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current PGC snapshot
As of June 29, 2026, spot at $47.61, ATM IV 43.90%, IV rank 11.99%, expected move 12.59%. The straddle on PGC 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 straddle structure on PGC specifically: PGC IV at 43.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a PGC straddle, with a market-implied 1-standard-deviation move of approximately 12.59% (roughly $5.99 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 PGC expiries trade a higher absolute premium for lower per-day decay. Position sizing on PGC should anchor to the underlying notional of $47.61 per share and to the trader's directional view on PGC stock.
PGC straddle setup
The PGC straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PGC near $47.61, the first option leg uses a $47.61 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PGC 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 PGC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $47.61 | N/A |
| Buy 1 | Put | $47.61 | N/A |
PGC straddle 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
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
PGC straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on PGC. 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 straddle on PGC
Straddles on PGC are pure-volatility plays that profit from large moves in either direction; traders typically buy PGC straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
PGC thesis for this straddle
The market-implied 1-standard-deviation range for PGC extends from approximately $41.62 on the downside to $53.60 on the upside. A PGC long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current PGC IV rank near 11.99% 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 PGC at 43.90%. As a Financial Services name, PGC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PGC-specific events.
PGC straddle positions are structurally neutral / high-volatility (long premium); 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. PGC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PGC alongside the broader basket even when PGC-specific fundamentals are unchanged. Always rebuild the position from current PGC chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on PGC?
- A straddle on PGC is the straddle strategy applied to PGC (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With PGC stock trading near $47.61, the strikes shown on this page are snapped to the nearest listed PGC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PGC straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the PGC straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 43.90%), 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 PGC straddle?
- The breakeven for the PGC straddle 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 PGC market-implied 1-standard-deviation expected move is approximately 12.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on PGC?
- Straddles on PGC are pure-volatility plays that profit from large moves in either direction; traders typically buy PGC straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current PGC implied volatility affect this straddle?
- PGC ATM IV is at 43.90% with IV rank near 11.99%, 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.