PUBM Bear Put Spread Strategy
PUBM (PubMatic, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
PubMatic, Inc. provides a cloud infrastructure platform that enables real-time programmatic advertising transactions for Internet content creators and advertisers worldwide. The company's solutions include Openwrap, a header bidding solution that provides enterprise-grade management and analytics tools; Openwrap OTT, a header bidding management solution for OTT; Openwrap SDK, a header bidding solution for in-app developers; private marketplace solutions; and media buyer consoles. In addition, it offers Real-Time Bidding (RTB) programmatic technologies, which provides various selling options across screens and ad formats; digital advertising inventory quality solutions to detect and filter out invalid traffic and other nefarious activity; Ad quality solutions targeting the reduction of security issues, quality issues, and performance issues; Identity Hub, an identity solution that allows for the use of any advertiser preferred user identifier in a scaled and privacy-compliant fashion; Audience Encore, an audience data platform; and cross-platform video, a sell side platform, which connects trusted video buyers to premium publishers. The company's platform supports an array of ad formats and digital device types, including mobile app, mobile web, desktop, display, video, over-the-top (OTT), connected television, and media. PubMatic, Inc. was incorporated in 2006 and is based in Redwood City, California.
PUBM (PubMatic, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $442.7M, a beta of 1.53 versus the broader market, a 52-week range of 6.15-13.88, average daily share volume of 767K, a public-listing history dating back to 2020, approximately 1K full-time employees. These structural characteristics shape how PUBM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.53 indicates PUBM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bear put spread on PUBM?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current PUBM snapshot
As of May 15, 2026, spot at $9.66, ATM IV 70.30%, IV rank 16.18%, expected move 20.15%. The bear put spread on PUBM 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 bear put spread structure on PUBM specifically: PUBM IV at 70.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a PUBM bear put spread, with a market-implied 1-standard-deviation move of approximately 20.15% (roughly $1.95 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 PUBM expiries trade a higher absolute premium for lower per-day decay. Position sizing on PUBM should anchor to the underlying notional of $9.66 per share and to the trader's directional view on PUBM stock.
PUBM bear put spread setup
The PUBM bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PUBM near $9.66, the first option leg uses a $9.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PUBM 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 PUBM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $9.66 | N/A |
| Sell 1 | Put | $9.18 | N/A |
PUBM bear put spread 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 strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
PUBM bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on PUBM. 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 bear put spread on PUBM
Bear put spreads on PUBM reduce the cost of a bearish PUBM stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
PUBM thesis for this bear put spread
The market-implied 1-standard-deviation range for PUBM extends from approximately $7.71 on the downside to $11.61 on the upside. A PUBM bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on PUBM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current PUBM IV rank near 16.18% 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 PUBM at 70.30%. As a Technology name, PUBM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PUBM-specific events.
PUBM bear put spread positions are structurally moderately 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. PUBM positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PUBM alongside the broader basket even when PUBM-specific fundamentals are unchanged. Long-premium structures like a bear put spread on PUBM 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 PUBM chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on PUBM?
- A bear put spread on PUBM is the bear put spread strategy applied to PUBM (stock). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With PUBM stock trading near $9.66, the strikes shown on this page are snapped to the nearest listed PUBM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PUBM bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the PUBM bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 70.30%), 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 PUBM bear put spread?
- The breakeven for the PUBM bear put spread 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 PUBM market-implied 1-standard-deviation expected move is approximately 20.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on PUBM?
- Bear put spreads on PUBM reduce the cost of a bearish PUBM stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current PUBM implied volatility affect this bear put spread?
- PUBM ATM IV is at 70.30% with IV rank near 16.18%, 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.