PAYO Profit Protection
RSI: 81 IV: 88%Current Price: $7.05 Updated: Jun 25, 2026 1:05 PM ET
Why Protect PAYO Now?
RSI above 70 historically signals mean reversion risk
Extended above moving average - potential pullback zone
Strong gains to protect - consider locking in profits
3 Protection Strategies
Protective Put
Buy downside insurance - unlimited upside retained
Insurance against downside - floor at $7.00
| Action | Type | Strike | Premium |
|---|---|---|---|
| BUY | PUT | $7.00 | $0.10 |
Covered Call
Generate income - caps upside but cushions downside
Generate income by capping upside at $8.00
| Action | Type | Strike | Premium |
|---|---|---|---|
| SELL | CALL | $8.00 | $0.05 |
P&L Comparison (100 Shares)
See how each protection strategy performs compared to holding unhedged shares.
| Scenario | No Protection | Protective Put | Covered Call |
|---|---|---|---|
| Stock -20% ($6) | $-141 | $-15 | $-136 |
| Unchanged ($7) | $0 | $-10 | +$5 |
| Stock +20% ($8) | +$141 | +$131 | +$100 |
P&L calculated at expiry. Actual results may vary based on time decay and IV changes.
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Use our Options Profit Calculator to model any protection strategy with your preferred strikes and expiry dates.