TYL Long Put Strategy
TYL (Tyler Technologies, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
Tyler Technologies, Inc. specializes in delivering comprehensive information management solutions and services tailored for the public sector. Its operations are organized into three primary divisions: Enterprise Software, Appraisal and Tax, and NIC. The company's extensive product portfolio encompasses financial management tools, such as modular fund accounting systems designed for government bodies and non-profit organizations, as well as utility billing platforms for managing both metered and unmetered services. Additionally, Tyler offers solutions that automate a wide array of municipal and county operations, ranging from municipal court and parking ticket administration to animal and business licensing, permits and inspections, code enforcement, citizen complaint resolution, ambulance billing, fleet maintenance, and cemetery records management. Educational institutions, particularly K-12 schools, benefit from their specialized student information and transportation management systems. Furthermore, the company delivers a comprehensive suite of judicial technologies, including systems for court case management, integrated court and law enforcement functions, prosecutor support, and supervision.
TYL (Tyler Technologies, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $12.41B, a trailing P/E of 39.84, a beta of 0.81 versus the broader market, a 52-week range of 270.71-621.34, average daily share volume of 726K, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how TYL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.81 places TYL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 39.84 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a long put on TYL?
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 TYL snapshot
As of June 29, 2026, spot at $288.26, ATM IV 52.70%, IV rank 78.89%, expected move 15.11%. The long put on TYL 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 18-day expiry.
Why this long put structure on TYL specifically: TYL IV at 52.70% is rich versus its 1-year range, which makes a premium-buying TYL long put relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 15.11% (roughly $43.55 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TYL expiries trade a higher absolute premium for lower per-day decay. Position sizing on TYL should anchor to the underlying notional of $288.26 per share and to the trader's directional view on TYL stock.
TYL long put setup
The TYL 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 TYL near $288.26, the first option leg uses a $290.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TYL chain at a 18-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 TYL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $290.00 | $13.70 |
TYL long put risk and reward
- Net Premium / Debit
- -$1,370.00
- Max Profit (per contract)
- $27,629.00
- Max Loss (per contract)
- -$1,370.00
- Breakeven(s)
- $276.30
- Risk / Reward Ratio
- 20.167
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
TYL long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on TYL. 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 | -100.0% | +$27,629.00 |
| $63.74 | -77.9% | +$21,255.52 |
| $127.48 | -55.8% | +$14,882.05 |
| $191.21 | -33.7% | +$8,508.57 |
| $254.95 | -11.6% | +$2,135.09 |
| $318.68 | +10.6% | -$1,370.00 |
| $382.42 | +32.7% | -$1,370.00 |
| $446.15 | +54.8% | -$1,370.00 |
| $509.89 | +76.9% | -$1,370.00 |
| $573.62 | +99.0% | -$1,370.00 |
When traders use long put on TYL
Long puts on TYL hedge an existing long TYL stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying TYL exposure being hedged.
TYL thesis for this long put
The market-implied 1-standard-deviation range for TYL extends from approximately $244.71 on the downside to $331.81 on the upside. A TYL long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long TYL position with one put per 100 shares held. Current TYL IV rank near 78.89% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on TYL at 52.70%. As a Technology name, TYL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TYL-specific events.
TYL 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. TYL positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TYL alongside the broader basket even when TYL-specific fundamentals are unchanged. Long-premium structures like a long put on TYL 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 TYL chain quotes before placing a trade.
Frequently asked questions
- What is a long put on TYL?
- A long put on TYL is the long put strategy applied to TYL (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 TYL stock trading near $288.26, the strikes shown on this page are snapped to the nearest listed TYL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TYL 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 TYL long put priced from the end-of-day chain at a 30-day expiry (ATM IV 52.70%), the computed maximum profit is $27,629.00 per contract and the computed maximum loss is -$1,370.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TYL long put?
- The breakeven for the TYL long put priced on this page is roughly $276.30 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 TYL market-implied 1-standard-deviation expected move is approximately 15.11%; 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 TYL?
- Long puts on TYL hedge an existing long TYL stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying TYL exposure being hedged.
- How does current TYL implied volatility affect this long put?
- TYL ATM IV is at 52.70% with IV rank near 78.89%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.