PUMP Long Put Strategy
PUMP (ProPetro Holding Corp.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Based in Midland, Texas, ProPetro Holding Corp. is a dedicated provider of oilfield services. The company primarily specializes in hydraulic fracturing, offering essential support for oil and gas exploration and production. Beyond fracturing, its diverse offerings include cementing, acidizing, and coiled tubing services. Operations are structured into Pressure Pumping and All Other segments. ProPetro serves energy companies focused on the extraction of North American oil and natural gas resources. As of December 31, 2021, its robust fleet boasted 12 hydraulic fracturing units, collectively generating 1,423,000 hydraulic horsepower.
PUMP (ProPetro Holding Corp.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $1.42B, a beta of 0.78 versus the broader market, a 52-week range of 4.51-18.5, average daily share volume of 4.7M, a public-listing history dating back to 2017, approximately 2K full-time employees. These structural characteristics shape how PUMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places PUMP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a long put on PUMP?
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.
PUMP snapshot
As of August 14, 2026, spot at $12.10, ATM IV 63.40%, IV rank 12.08%, expected move 18.18%. The long put on PUMP below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this long put structure on PUMP specifically: PUMP IV at 63.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a PUMP long put, with a market-implied 1-standard-deviation move of approximately 18.18% (roughly $2.20 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PUMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on PUMP should anchor to the underlying notional of $12.10 per share and to the trader's directional view on PUMP stock.
PUMP long put setup
The PUMP 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 PUMP at $12.10 on that close, the first option leg uses a $12.10 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PUMP chain at a 35-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 PUMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $12.10 | N/A |
PUMP 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.
PUMP long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on PUMP. 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 PUMP
Long puts on PUMP hedge an existing long PUMP stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PUMP exposure being hedged.
PUMP thesis for this long put
The market-implied 1-standard-deviation range for PUMP extends from approximately $9.90 on the downside to $14.30 on the upside. A PUMP long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long PUMP position with one put per 100 shares held. Current PUMP IV rank near 12.08% 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 PUMP at 63.40%. As a Energy name, PUMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PUMP-specific events.
PUMP 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. PUMP positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PUMP alongside the broader basket even when PUMP-specific fundamentals are unchanged. Long-premium structures like a long put on PUMP 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 PUMP chain quotes before placing a trade.
Frequently asked questions
- What is a long put on PUMP?
- A long put on PUMP is the long put strategy applied to PUMP (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 PUMP stock at $12.10 on the most recent close, the strikes shown on this page are snapped to the nearest listed PUMP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PUMP 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 PUMP long put priced from the end-of-day chain at a 30-day expiry (ATM IV 63.40%), 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 PUMP long put?
- The breakeven for the PUMP long put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 PUMP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.18%; 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 PUMP?
- Long puts on PUMP hedge an existing long PUMP stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying PUMP exposure being hedged.
- How does current PUMP implied volatility affect this long put?
- PUMP ATM IV is at 63.40% with IV rank near 12.08%, 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.