SIGA Long Put Strategy
SIGA (SIGA Technologies, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
SIGA Technologies, Inc., a commercial-stage pharmaceutical company, focuses on the health security and infectious disease markets in the United States. Its lead product is TPOXX, an oral formulation antiviral drug for the treatment of human smallpox disease caused by variola virus. SIGA Technologies, Inc. has a strategic partnership with Cipla Therapeutics to deliver sustained innovation and access to antibacterial drugs primarily against biothreats. The company was incorporated in 1995 and is headquartered in New York, New York.
SIGA (SIGA Technologies, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $309.1M, a trailing P/E of 15.24, a beta of 0.85 versus the broader market, a 52-week range of 4.29-9.62, average daily share volume of 668K, a public-listing history dating back to 1997, approximately 46 full-time employees. These structural characteristics shape how SIGA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places SIGA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SIGA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on SIGA?
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 SIGA snapshot
As of May 15, 2026, spot at $4.24, ATM IV 22.20%, IV rank 0.00%, expected move 6.36%. The long put on SIGA 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 SIGA specifically: SIGA IV at 22.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SIGA long put, with a market-implied 1-standard-deviation move of approximately 6.36% (roughly $0.27 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 SIGA expiries trade a higher absolute premium for lower per-day decay. Position sizing on SIGA should anchor to the underlying notional of $4.24 per share and to the trader's directional view on SIGA stock.
SIGA long put setup
The SIGA 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 SIGA near $4.24, the first option leg uses a $4.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SIGA 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 SIGA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $4.24 | N/A |
SIGA 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.
SIGA long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on SIGA. 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 SIGA
Long puts on SIGA hedge an existing long SIGA stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SIGA exposure being hedged.
SIGA thesis for this long put
The market-implied 1-standard-deviation range for SIGA extends from approximately $3.97 on the downside to $4.51 on the upside. A SIGA long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long SIGA position with one put per 100 shares held. Current SIGA IV rank near 0.00% 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 SIGA at 22.20%. As a Healthcare name, SIGA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SIGA-specific events.
SIGA 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. SIGA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SIGA alongside the broader basket even when SIGA-specific fundamentals are unchanged. Long-premium structures like a long put on SIGA 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 SIGA chain quotes before placing a trade.
Frequently asked questions
- What is a long put on SIGA?
- A long put on SIGA is the long put strategy applied to SIGA (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 SIGA stock trading near $4.24, the strikes shown on this page are snapped to the nearest listed SIGA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SIGA 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 SIGA long put priced from the end-of-day chain at a 30-day expiry (ATM IV 22.20%), 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 SIGA long put?
- The breakeven for the SIGA 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 SIGA market-implied 1-standard-deviation expected move is approximately 6.36%; 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 SIGA?
- Long puts on SIGA hedge an existing long SIGA stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SIGA exposure being hedged.
- How does current SIGA implied volatility affect this long put?
- SIGA ATM IV is at 22.20% with IV rank near 0.00%, 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.