PUBM Long Put 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 long put on PUBM?

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 PUBM snapshot

As of May 15, 2026, spot at $9.66, ATM IV 70.30%, IV rank 16.18%, expected move 20.15%. The long put 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 long put 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 long put, 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 long put setup

The PUBM 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 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).

ActionTypeStrike / BasisPremium (est)
Buy 1Put$9.66N/A

PUBM 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.

PUBM long put payoff curve

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

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

PUBM thesis for this long put

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 long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PUBM position with one put per 100 shares held. 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 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. 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 long put 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 long put on PUBM?
A long put on PUBM is the long put strategy applied to PUBM (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 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 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 PUBM long put 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 long put?
The breakeven for the PUBM 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 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 long put on PUBM?
Long puts on PUBM hedge an existing long PUBM stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PUBM exposure being hedged.
How does current PUBM implied volatility affect this long put?
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.

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