PSKY Long Put Strategy
PSKY (Paramount Skydance Corporation Class B Common Stock), in the Communication Services sector, (Entertainment industry), listed on NASDAQ.
Paramount Skydance Corporation functions as a worldwide leader in media, streaming, and entertainment. Its extensive operations are strategically divided into three core divisions: Television Media, Direct-to-Consumer platforms, and Filmed Entertainment. The Television Media division encompasses a vast array of broadcasting and cable properties. This includes the prominent domestic CBS Television Network and its local CBS Stations, alongside international free-to-air channels such as Network 10, Channel 5, Telefe, and Chilevisión. It also manages a suite of premium and basic cable channels within the U.S., featuring household names like Nickelodeon, MTV, CMT, Comedy Central, BET, Paramount+ with SHOWTIME, Paramount Network, The Smithsonian Channel, BET Media Group, and CBS Sports Network, many of which have international counterparts. Furthermore, this segment is responsible for domestic and international television production through studios like CBS Studios, Paramount Television Studios, and Showtime/MTV Entertainment Studios.
PSKY (Paramount Skydance Corporation Class B Common Stock) trades in the Communication Services sector, specifically Entertainment, with a market capitalization of approximately $10.33B, a beta of 1.47 versus the broader market, a 52-week range of 7.62-20.86, average daily share volume of 10.5M, a public-listing history dating back to 2005, approximately 18K full-time employees. These structural characteristics shape how PSKY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.47 indicates PSKY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PSKY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on PSKY?
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.
PSKY snapshot
As of August 14, 2026, spot at $10.20, ATM IV 46.49%, IV rank 5.47%, expected move 13.33%. The long put on PSKY below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this long put structure on PSKY specifically: PSKY IV at 46.49% is on the cheap side of its 1-year range, which favors premium-buying structures like a PSKY long put, with a market-implied 1-standard-deviation move of approximately 13.33% (roughly $1.36 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PSKY expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSKY should anchor to the underlying notional of $10.20 per share and to the trader's directional view on PSKY stock.
PSKY long put setup
The PSKY long put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PSKY at $10.20 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSKY chain at a 28-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 PSKY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $10.00 | $0.39 |
PSKY long put risk and reward
- Net Premium / Debit
- -$39.00
- Max Profit (per contract)
- $960.00
- Max Loss (per contract)
- -$39.00
- Breakeven(s)
- $9.61
- Risk / Reward Ratio
- 24.615
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
PSKY long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on PSKY. 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% | +$960.00 |
| $2.26 | -77.8% | +$734.58 |
| $4.52 | -55.7% | +$509.17 |
| $6.77 | -33.6% | +$283.75 |
| $9.03 | -11.5% | +$58.33 |
| $11.28 | +10.6% | -$39.00 |
| $13.54 | +32.7% | -$39.00 |
| $15.79 | +54.8% | -$39.00 |
| $18.04 | +76.9% | -$39.00 |
| $20.30 | +99.0% | -$39.00 |
When traders use long put on PSKY
Long puts on PSKY hedge an existing long PSKY stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PSKY exposure being hedged.
PSKY thesis for this long put
The market-implied 1-standard-deviation range for PSKY extends from approximately $8.84 on the downside to $11.56 on the upside. A PSKY long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PSKY position with one put per 100 shares held. Current PSKY IV rank near 5.47% 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 PSKY at 46.49%. As a Communication Services name, PSKY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSKY-specific events.
PSKY 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. PSKY positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PSKY alongside the broader basket even when PSKY-specific fundamentals are unchanged. Long-premium structures like a long put on PSKY 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 PSKY chain quotes before placing a trade.
Frequently asked questions
- What is a long put on PSKY?
- A long put on PSKY is the long put strategy applied to PSKY (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 PSKY stock at $10.20 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PSKY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PSKY 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 PSKY long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 46.49%), the computed maximum profit is $960.00 per contract and the computed maximum loss is -$39.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PSKY long put?
- The breakeven for the PSKY long put priced on this page is roughly $9.61 at expiration, derived from the August 14, 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 PSKY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.33%; 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 PSKY?
- Long puts on PSKY hedge an existing long PSKY stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PSKY exposure being hedged.
- How does current PSKY implied volatility affect this long put?
- PSKY ATM IV is at 46.49% with IV rank near 5.47%, 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.