URI Long Put Strategy
URI (United Rentals, Inc.), in the Industrials sector, (Rental & Leasing Services industry), listed on NYSE.
United Rentals, Inc., founded in 1997 and headquartered in Stamford, Connecticut, functions as a prominent equipment rental firm through its various subsidiaries. The company's operations are divided into two main divisions: General Rentals and Specialty. The General Rentals segment offers a broad selection of construction and industrial machinery, including heavy equipment like backhoes, skid-steer loaders, earthmoving machinery, and forklifts, alongside aerial work platforms such as boom and scissor lifts. This division also provides general tools and lighter equipment, ranging from pressure washers to power tools. Its client base is diverse, encompassing construction and industrial enterprises, manufacturers, utility companies, municipalities, government bodies, and individual homeowners. Conversely, the Specialty segment focuses on more specialized construction products.
URI (United Rentals, Inc.) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $70.29B, a trailing P/E of 27.14, a beta of 1.80 versus the broader market, a 52-week range of 701.59-1179.18, average daily share volume of 527K, a public-listing history dating back to 1997, approximately 29K full-time employees. These structural characteristics shape how URI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.80 indicates URI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. URI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on URI?
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.
URI snapshot
As of August 14, 2026, spot at $1,152.74, ATM IV 30.10%, IV rank 13.60%, expected move 8.63%. The long put on URI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this long put structure on URI specifically: URI IV at 30.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a URI long put, with a market-implied 1-standard-deviation move of approximately 8.63% (roughly $99.47 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated URI expiries trade a higher absolute premium for lower per-day decay. Position sizing on URI should anchor to the underlying notional of $1,152.74 per share and to the trader's directional view on URI stock.
URI long put setup
The URI long put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With URI at $1,152.74 on that close, the first option leg uses a $1,150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URI chain at a 28-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 URI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $1,150.00 | $35.25 |
URI long put risk and reward
- Net Premium / Debit
- -$3,525.00
- Max Profit (per contract)
- $111,474.00
- Max Loss (per contract)
- -$3,525.00
- Breakeven(s)
- $1,114.75
- Risk / Reward Ratio
- 31.624
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
URI long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on URI. 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% | +$111,474.00 |
| $254.89 | -77.9% | +$85,986.39 |
| $509.76 | -55.8% | +$60,498.78 |
| $764.64 | -33.7% | +$35,011.18 |
| $1,019.51 | -11.6% | +$9,523.57 |
| $1,274.39 | +10.6% | -$3,525.00 |
| $1,529.27 | +32.7% | -$3,525.00 |
| $1,784.14 | +54.8% | -$3,525.00 |
| $2,039.02 | +76.9% | -$3,525.00 |
| $2,293.89 | +99.0% | -$3,525.00 |
When traders use long put on URI
Long puts on URI hedge an existing long URI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying URI exposure being hedged.
URI thesis for this long put
The market-implied 1-standard-deviation range for URI extends from approximately $1,053.27 on the downside to $1,252.21 on the upside. A URI long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long URI position with one put per 100 shares held. Current URI IV rank near 13.60% 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 URI at 30.10%. As a Industrials name, URI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URI-specific events.
URI 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. URI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move URI alongside the broader basket even when URI-specific fundamentals are unchanged. Long-premium structures like a long put on URI 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 URI chain quotes before placing a trade.
Frequently asked questions
- What is a long put on URI?
- A long put on URI is the long put strategy applied to URI (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 URI stock at $1,152.74 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed URI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are URI 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 URI long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.10%), the computed maximum profit is $111,474.00 per contract and the computed maximum loss is -$3,525.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a URI long put?
- The breakeven for the URI long put priced on this page is roughly $1,114.75 at expiration, derived from the August 14, 2026 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 URI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.63%; 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 URI?
- Long puts on URI hedge an existing long URI stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying URI exposure being hedged.
- How does current URI implied volatility affect this long put?
- URI ATM IV is at 30.10% with IV rank near 13.60%, 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.